Other Things Constant,which of the Following Would Reduce Unemployment and Raise

question 46

Multiple Choice

Other things constant,which of the following would reduce unemployment and raise inflation?

• A)businesses become more optimistic about the future of the economy
• B)because of high growth abroad,net exports rise
• C)the government cuts taxes
• D)All of the above are correct.

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production or input.

Mechanics

The branch of physics that deals with the behavior of physical bodies when subjected to forces or displacements and the subsequent effects of the bodies on their environment.

Profit

The financial gain made in a transaction or through business operations after subtracting all expenses.

Marginal Revenue Product

The extra income produced through the use of an additional unit of a resource, like labor or capital.