Use the Figure Below to Answer the Following Questions

question 50

Multiple Choice

Use the figure below to answer the following questions.

Figure 26.3.3
-Refer to Figure 26.3.3. In which of the graphs would we predict that eventually the price level will fall and real GDP will increase, all else remaining the same?

• A)(a)only
• B)(b)only
• C)(c)only
• D)(d)only
• E)(c)and (d)

---

Definitions:

Marginal Revenue Product

The extra income produced by the use of an additional unit of a resource, for example, labor or capital.

Unit of Output

A quantifiable amount of goods or services produced by a firm, industry, or economy.

Labor Hire

The process of employing workers, often on a temporary basis, to perform certain jobs or tasks.

Marginal Productivity

is the additional output resulting from using one more unit of a particular input, holding all other inputs constant.