Marginal Product of Labor Typically ______ as More Labor Is

question 140

Multiple Choice

Marginal product of labor typically ______ as more labor is hired.

• A) increases
• B) remains the same
• C) declines
• D) sometimes increases, sometimes remains the same, and sometimes declines

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Definitions:

Aggregate Demand Curve

A graph showing the relationship between the total quantity of goods and services demanded across all sectors of an economy and the price level, all else being equal.

Long-Run Aggregate Supply Curve

A graphical representation that shows the relationship between the overall price level and the quantity of goods and services produced by an economy when all resources are fully employed.

Cyclical Unemployment

The variation in unemployment caused by the ups and downs of economic cycles, including recessions and expansions.

Recessionary Gap

A situation where an economy's actual production is less than its potential output, often leading to unemployment and underused resources.