Refer to Scenario 7.8 below to answer the question(s) that follow. SCENARIO 7.8: A swimming pool cleaning company has the following production possibilities. With one, two, three, and four workers, the company can clean 5, 12, 17, and 20 pools per day, respectively. Refer to Scenario 7.8. The marginal product of the third worker is

The supply of real GDP is a function of

A) the total expenditures of consumers, investors and government. B) the sum of wages, salaries, corporate profits, rents and interest. C) only the state of technology. D) the quantities of labor, capital and the state of technology.

If the Federal Reserve buys government bonds from the public,

A. Demand deposits will decrease. B. Bank reserves will not change. C. The money supply will contract. D. Banks will be able to make additional loans.