If Another Worker Adds 9 Units of Output to a Group

question 308

Multiple Choice

If another worker adds 9 units of output to a group of workers who had an average product of 7 units, then the average product of labor

• A) will remain the same.
• B) will increase.
• C) will decrease.
• D) What will happen to it cannot be determined.

---

Definitions:

Long-Run Aggregate Supply

The total supply of goods and services that an economy can produce when it is using all of its resources efficiently and sustainably.

Actual Price Level

The current market price of goods and services, reflecting the true purchasing power of money at a given time.

Raw Materials

Basic materials from which products are made, typically extracted from natural resources.

Equilibrium Price Level

The equilibrium price level is the market state where the quantity of goods supplied is equal to the quantity of goods demanded, often considered the ideal balance for market transactions.