Competitive firms that maximize profits will hire workers until the value of the marginal product of labor
a. equals the wage.
b. equals the price of the final good.
c. begins to fall.
d. begins to rise.
a
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An increase in government transfer payments will shift the aggregate demand curve to the right
A) by the initial change in consumption arising from the change in transfer payment × the spending multiplier. B) by the initial change in income arising from the change in transfer payment × the spending multiplier. C) by the change in transfer payments × times the spending multiplier. D) by the change in transfer payments × times the marginal propensity to consume
During the Revolutionary War, the Pennsylvania legislature attempted to help the Continental Army by enacting
a. wage floors for soldiers in the army. b. bonuses for soldiers who re-enlisted. c. laws to buy food for the soldiers stationed in Pennsylvania. d. price controls on essential commodities. e. All of the above are correct.