Suppose the long-run average cost curve is U-shaped. When LRAC is in the increasing stage, there exist:

The table above shows the total product schedule for Rick's Lawn Service, a yard care company. The total product schedule shows

A) increasing marginal returns when the 6th worker is hired. B) decreasing marginal returns when the 1st worker is hired. C) first increasing and then decreasing marginal returns. D) output first increases then increases. E) only decreasing marginal returns.

Over the business cycle, real GDP fluctuates around

A) the business cycle trough. B) the business cycle peak. C) nominal GDP. D) potential GDP. E) the Lucas Wedge.