If a firm is producing an output level at which marginal revenue exceeds marginal cost, the firm will increase profits by reducing its output level

How does monetary policy work in the short run?

A. Fed open market purchases, reserves/money supply increase, interest rates decrease, investment increases, demand increases, price and output increase B. Fed open market purchases, reserves/money supply decrease, disposable income increases, consumption increases, demand increases, price and output increase C. Fed open market sales, reserves/money supply increase, interest rates decrease, investment increases, demand increases, price and output increase D. Fed open market sales, reserves/money supply increase, interest rates decrease, investment increases, demand increases, price and output increases E. Fed open market purchases, government spending increases, demand increases, price and output increase

The demand for labor depends primarily on the additional output produced as a result of hiring an additional worker and

A) the additional revenue received from selling the output produced as a result of hiring an additional worker. B) the payment made to the worker for producing the additional output. C) the number of workers willing to produce the additional output. D) the elasticity of demand for the output produced by the worker.