Suppose the real interest rate is 4% and the expected inflation rate is 3%. If the money supply increases by 10% and output, the real interest rate, and the expected inflation rate are unchanged, then the price level increases by

The portion of the long-run average cost curve in which economies of scale are experienced shows that as output increases, the

A) average total cost decreases. B) average total cost increases. C) marginal cost increases. D) marginal cost decreases. E) average variable cost is constant and the average fixed cost decreases.

Which of the following statements correctly identifies a difference between labor and land?

A) Land can be rented but not owned by a firm, whereas labor can be rented or owned. B) Labor can be rented but not owned, whereas land can be rented or owned by a firm. C) Labor is hired until a point where the marginal product of labor equals the price of labor, whereas land is rented until a point where the average product of land equals the price of land. D) Labor is hired until a point where the average product of labor equals the price of labor, whereas land is rented until a point where the marginal product of land equals the price of land.