Other things equal, if the central bank raises the target inflation rate, this would result in the
A) AD curve shifting temporarily to the right.
B) AD curve shifting permanently to the right.
C) AS curve shifting temporarily to the left.
D) AS curve shifting permanently to the left.
B
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Explain how studying for an exam is subject to the law of diminishing marginal productivity
A. The more and more time you devote to studying, the amount of time you have to devote to other things diminishes at the margin. This is true for any activity. That is, all activities are subject to diminishing marginal productivity. B. Assuming you organize your studying reasonably, you will focus on the parts of the text that are most likely to show up on the exam and most likely to raise your grade. As you study less relevant material, your additional time spent studying will yield fewer additional points on the exam. At some point, additional studying can have a negative return. C. The law of diminishing marginal productivity implies that the optimal amount of studying is however many hours will lead to your highest possible score. After this point, your performance falls and you should not study any more. D. The law of diminishing marginal productivity pertains to studying in a group only. If you study with one or two people, your grade will likely improve because they can teach you information you don't know. However, at some point, as you add another person, the grades for everyone decline. References
The ability of increasing quantity supplied in response to a higher price is identical across industries
a. True b. False