Several firms in an industry laid off their workers. Assuming all else equal, this will lead to a ________
A) higher rate of output in the industry
B) higher rate of capacity utilization in the industry
C) lower rate of capacity utilization in the industry
D) higher real wage in the industry
C
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If currency outside of banks is $800 billion; traveler's checks are $10 billion; checkable deposits owned by individuals and businesses are $700 billion; savings deposits are $4,000 billion; small time deposits are $1,000 billion; and money market
funds and other deposits are $800 billion, then M2 equals ________ billion. A) $7,310 B) $5,800 C) $710 D) $2,510 E) $1,510
The presence of a distorting tax on wage income can result in
A) MPN < MRT1,C. B) MRT1,C < MRS1,C. C) MPN < w. D) MRS1,C < MPN
Refer to the information provided in Figure 8.6 below to answer the question(s) that follow. 
Figure 8.6 Refer to Figure 8.6. Average variable cost is represented by
A. curve 1. B. curve 2. C. curve 3. D. line segment AB.
Which of the following is not a major function of the Federal Reserve System?
A) setting income tax rates B) controlling the money supply C) lender of last resort D) clearing checks between banks