Refer to Figure 9.7. After the policy was implemented, the quantity traded became

When the marginal revenue product of an input is less than its price, the

a. producer should expand the use of that input. b. price of the input will automatically rise in a free market. c. producer should reduce the use of that input. d. marginal physical product of that input must be below its average physical product.

If an increase in aggregate expenditures results in no increase in real GDP, we can surmise that the:

A. economy is in a deep recession. B. MPC equals 1. C. economy is already operating at full employment. D. price level has fallen.