Figure 16-3 -Refer to the Figure 16-3.Starting from C and 3,in the and 3,in

question 152

Multiple Choice

Figure 16-3
-Refer to the Figure 16-3.Starting from c and 3,in the long run,where does an increase in money supply growth move the economy to?

• A) a and 1
• B) e and 4
• C) d and 4
• D) e and 5

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Definitions:

Labor

The human effort, both physical and mental, employed in the production of goods and services.

Value of Marginal Product

The increment in revenue a firm realizes from employing one additional unit of input, holding all other factors constant.

Output

The quantity of goods or services produced by a company, sector, or economy.

Diminishing Marginal Product

A principle stating that as additional units of a variable input are added to a fixed input, the marginal product of the variable input eventually decreases.