Holding Output Constant, the MRTS Is

question 36

Multiple Choice

Holding output constant, the MRTS is:

• A)the ratio of the total products of two inputs.
• B)the ratio of the prices of two inputs.
• C)the ratio of the APs of two inputs.
• D)the ratio of the MPs of two inputs.

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Definitions:

Aggregate Demand

The entirety of consumer and business demand for goods and services in an economy, assessed at an overall price level within a defined time span.

Decrease

A reduction in the quantity, size, or extent of something.

Output Levels

The quantities of goods and services produced by an economy over a specific time period.

Recessionary Gap

A situation where actual economic output is lower than the output that would be achieved at full employment, indicating underutilized resources.