A student wrote: "When the average product of labor exceeds the marginal product, the marginal product is increasing." If you were the instructor, how would you correct this statement?
What will be an ideal response?
There are several errors. The corrected sentence is "When the average marginal product of labor exceeds the marginal average product, the marginal average product is increasing."
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Beginning in December 2007, the Fed began cutting the federal funds rate from 4.25% to less than 1%. During this time, it was engaged in ________ monetary policy in order to reduce the threat of a ________ in the US economy
A) expansionary; stagflation B) contractionary; stagflation C) expansionary; recession D) contractionary; recession
For a given significance level, if the calculated value of the Durbin Watson statistic lies between the lower critical value and the upper critical value, _____.
A. the hypothesis of no serial correlation is accepted B. the hypothesis of no serial correlation is rejected C. the test is inconclusive D. the hypothesis of heteroskedasticity is accepted