Which of the following is FALSE regarding the general rule for hiring?
A) Virtually every optimizing rule in economics involves comparing marginal benefits with marginal cost.
B) The benefit from added workers is extra output and consequently more revenues.
C) The firm hires workers up to the point at which the additional cost associated with hiring the last worker is equal to the additional revenue generated by that worker.
D) If any firm hired fewer workers over time, profits would definitely increase at that firm.
D
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What will be an ideal response?
Under the assumption of rational expectations, an anticipated increase in the money supply has no effect on
A) nominal GDP. B) real GDP. C) the price level. D) velocity.