Policymakers who influence aggregate demand can potentially mitigate the severity of economic fluctuations

Which of the following is an implication of the law of diminishing returns?

a. Total output will decline as more workers are hired. b. In the long run, average total cost will eventually decline as output is expanded. c. In the short run, expansion of output will eventually lead to increases in marginal cost and average total cost. d. A doubling of all inputs will lead to more than a doubling of output.

If you are faced with the choice of receiving $500 today or $800 6 years from today, you will be indifferent between the two possibilities if the interest rate is 8.148 percent

a. True b. False Indicate whether the statement is true or false