Marginal productivity analysis shows that a drop in the price of the product will cause input use to

Trace through the Keynesian cause-and-effect sequence. An increase in the money supply will cause the interest rate to

a. fall, boosting investment and shifting the AD curve to the right, leading to an increase in real GDP b. fall, boosting investment and shifting the AD curve to the right, leading to a decrease in real GDP c. rise, cutting investment and shifting the AD curve to the right, leading to an increase in real GDP d. rise, boosting investment and shifting the AD curve to the left, leading to an increase in real GDP e. fall, cutting investment and shifting the AD curve to the left, leading to a decrease in real GDP

When the market generates an equilibrium price, we know that

a. the quantity demanded is higher than the quantity demanded associated with a market that is not in equilibrium b. excess demand and excess supply are zero c. increases in quantity demanded are matched by increases in quantity supplied d. it is the most profitable price for suppliers e. all demanders who want the good will get it