A decrease in the price of a firm's output
A) raises the value of marginal product of each unit of labor.
B) shifts the firm's demand for labor curve rightward.
C) results in the firm increasing the amount of output it produces.
D) None of the above is correct.
D
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In which of the following situations would the Fed conduct contractionary monetary policy?
A) The Fed is worried that deflation will become a problem. B) The Fed fears that unemployment is climbing above the natural rate. C) The Fed believes that aggregate demand was growing too slowly to keep up with potential GDP. D) The Fed is concerned that aggregate demand would continue to exceed the growth in potential GDP.
As a means of motivating research and development, a patent may stimulate either too much or too little research, relative to the socially optimal level
Indicate whether the statement is true or false