The level of an economic activity should be increased to the point where
a. Marginal benefits equal to zero
b. Marginal costs of the investment are less than marginal benefits of the investment
c. Marginal benefits are greater than marginal costs
d. Marginal costs are equal to marginal benefits
d
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Suppose that wages and prices are quite flexible, so that the short-run aggregate supply curve is steep. In that case, ________
A) policies to stabilize inflation are probably needed more than policies to stabilize economic activity B) supply shocks will destabilize inflation, but have minimal impact on output C) demand shocks will destabilize output, but have minimal impact on inflation D) all of the above E) none of the above
Which of the following is not a short-run decision for a fisherman?
a. hire more fishing crew b. produce less fish c. buy a new fishing boat d. buy more bait e. purchase less fuel for the boat