In the long run, monetary and fiscal policies have no control over

The marginal product of labor is always ________ and it ________ as the labor stock increases

A) positive; increases B) positive; decreases C) negative; increases D) negative; decreases

Which of the following best illustrates the use of discretionary fiscal policy?

a. Congress providing $1 billion in relief aid for hurricane victims b. Congress appropriating $400 million to help the needy and the appropriation being financed by a tax on wealth c. Income tax receipts being smaller because of a decline in real GDP during a recession d. The Federal Reserve tightening credit when it receives news of accelerating inflation e. Congress passing a bill authorizing $2 billion in additional spending when it receives news of a deepening recession