-Refer to the Above Diagrams

question 121

Multiple Choice

-Refer to the above diagrams.Other things equal,Curve B will shift upward when:

• A) the level of GDP increases.
• B) the interest rate increases.
• C) curve A shifts to the left.
• D) curve A shifts to the right.

---

Definitions:

Diminishing Marginal Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant.

Variable Factor

An input or resource whose quantity can be changed in the short run to adjust production levels.

Total Output

The total quantity of goods or services produced by an economy or firm in a given period.

Total Product Curve

A graph that illustrates the total quantity of output produced by a firm as a function of the total quantity of a single input used, holding all other inputs constant.