Author Question: Technological change that increases the marginal productivity of labor in the classical model would ... (Read 55 times)

karlynnae · **on:** Jun 30, 2018

Technological change that increases the marginal productivity of labor in the classical model would cause

a. labor demand, output and the price level to rise.
b. labor demand to fall, the price level to fall, and output to rise.
d. labor demand, output and employment to rise.
c. output to rise but labor demand to fall.

Question 2

The most important determinant of any multiplier in the Keynesian model is

a. the level of planned investment.
b. the level of unemployment.
c. the marginal propensity to consume.
d. the level of excess demand.