In determining the benefit of additional investment to the representative firm, we consider the marginal product of

The formula for the computation of labor productivity is

A) nominal GDP/number of workers. B) real GDP/number of workers. C) nominal GDP/population. D) real GDP/population.

The Classical macroeconomic model proposes that

A) real GDP equals potential GDP as long as inflation equals zero. B) government intervention is required to help the economy reach its potential. C) changes in the quantity of money are critical in driving economic growth. D) socialism produces the most efficient economic outcomes for a society. E) markets work efficiently to produce the best macroeconomic outcomes.