The marginal product of labor (MPL) is given by the ________
A) labor share of income + average output per unit of labor
B) labor share of income - average output per unit of labor
C) labor share of income ÷ average output per unit of labor
D) labor share of income × average output per unit of labor
E) none of the above
D
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The relative prices of the products that use natural resources intensively will decrease over time with the decrease in the availability of the natural resources.
Answer the following statement true (T) or false (F)
Hypothetical economy: C=$600 billion, I=$300 billion, G=$150 bill Assume for the long run: 1. For every 1% increase (decrease) in interest rate, planned investment decreases (increases) by $5 billion. 2. For every $10 billion increase (decrease) in government spending, interest rate increases (decreases) by 1%. 3. The MPC = 0.8 When government spending increases by $30 billion, the crowding-out effect can be represented by a
A) $30 billion decrease in investment. B) $15 billion decrease in investment. C) 3% decrease in the interest rate. D) 1% increase in the interest rate.