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If bicycles can be sold for $100 each, and the marginal product of hiring a third worker is 2 bicycles, then the marginal revenue product from hiring that worker is

a. 2 bicycles b. $200 c. $100 d. $1,000 e. $300

Suppose there is a decrease in short-run aggregate supply. If the Federal Reserve wants to stabilize output it should

a. buy bonds. These purchases also move the price level closer to its original level. b. buy bonds. However these purchases move the price level farther from its original level. c. sell bonds. These purchases also move the price level closer to its original level. d. sell bonds. However these purchase move the price level farther from its original level.