A decrease in money supply will lead to ________ if nominal wages are fixed
A) lower unemployment B) higher real wages
C) higher output D) lower real wages
B
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Why do economists like competitive markets?
A. Competitive markets result in optimal and efficient levels of production. B. Competitive markets result in lower levels of production. C. Competitive markets are the best way to allocate every good or service. D. Competitive markets result in high prices and profit for sellers.
Which of the following does consumption rely on to provide goods and services:
A. Producers B. Consumers C. Owners D. Deciders
In 1914, Henry Ford increased his workers’ wages from $3 to $5 per day and succeeded in increasing his profits. Which of the following principles was he demonstrating?
a. efficiency wage b. relative price c. natural rate of unemployment d. potential output
A firm will continue investing up to the point at which the marginal revenue product of capital is equal to its rental cost.
Answer the following statement true (T) or false (F)