When the marginal and average products of labor are equal to each other, the
A) average product must be at its maximum value.
B) marginal product must be at its maximum value.
C) total product must be at its maximum value.
D) None of the above answers is correct
A
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Recently, banking has become easier with automated teller machines replacing bank tellers. The loss of tellers' jobs is an example of _____
a. cyclical unemployment b. structural unemployment c. frictional unemployment d. underemployment e. voluntary unemployment
Answer the following statements true (T) or false (F)
1. The aggregate demand curve shows that when the price level rises, the quantity of real output demanded decreases. 2. An increase in the price level reduces the real value of financial assets with fixed money values and, as a result, the holders of these assets decrease their spending. 3. The real-balance and interest-rate effects help explain why aggregate demand might shift to the right or to the left. 4. An increase in real interest rates will increase investment and aggregate demand. 5. When the stock market crashed in 2008, the so-called reverse wealth effect caused consumer spending to decrease.