The costs of unemployment are lowest (and perhaps even negative) for ________ unemployment.

If the government decreases spending and taxes by 1,000 units and the marginal propensity to consume is .9, then

a. more information is needed. b. output will decrease by 900. c. output will decrease by 10,000. d. output will increase by 10,000.

Refer to the above diagram. At output level Q :

A. marginal product is rising. B. marginal product is negative. C. marginal product is falling. D. one cannot determine whether marginal product is falling or rising.