A profit maximizing monopolist will hire labor up to the point where
A) marginal revenue product equals the price of the product.
B) marginal revenue product is greater than the wage rate.
C) marginal revenue product equals than the wage rate.
D) marginal revenue product is less than the wage rate.
C
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If the Federal Reserve is interested in conducting contractionary policy, what types of policies should it consider?
What will be an ideal response?
When the supply of real loanable funds is upward-sloping and the demand for real loanable funds rises, complete crowding-out:
a. Occurs because private demand falls by the same amount that government borrowing rises. b. Does not occur because taxes rise with the increase in real GDP. c. Does not occur because new funds are supplied to the Real Loanable Funds Market as the real, risk-free interest rate rises. d. Occurs because private borrowers will increase the amount their loans as the real risk-free interest rate rises.