In the figure above, the marginal product of the second worker is

With tickets free and the show to be held in the 1,500-seat Detroit theater, what is free and what is scarce? Explain your answer

What will be an ideal response?

Refer to Table 15-1. The hypothetical information in the table shows what the values for real GDP and the price level will be in 2017 if the Fed does not use monetary policy

Which of the following policies makes sense if the Fed wants to keep real GDP at its potential level in 2017? A) The Fed should lower capital gains taxes. B) The Fed should lower the target for the federal funds rate. C) The Fed should pursue contractionary policy. D) The trading desk should sell Treasury securities.