A decrease in demand for a product, holding other things constant, will
A) increase the marginal revenue product of labor.
B) decrease the marginal revenue product of labor.
C) not change the marginal revenue product of labor.
D) have an undetermined effect upon the marginal revenue product of labor.
B
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Countercyclical fiscal policy refers to
a. any fiscal policy that cycles between budget surpluses and budget deficits b. the use of taxes and government spending to keep the economy close to potential GDP in the short run c. any fiscal policy that is employed during a business cycle d. the use of open market purchases of bonds to keep the economy close to potential GDP in the short run e. the use of changes in tax rates to keep the economy at potential output in the long run
The MPC can be defined as that fraction of a:
A. change in income that is not spent. B. change in income that is spent. C. given total income that is not consumed. D. given total income that is consumed.