Suppose that monetary neutrality and the Fisher effect both hold. An increase in the money supply growth rate increases

a. the inflation rate and real interest rates.
b. the inflation rate, but not real interest rates.
c. real interest rates, but not the inflation rate.
d. neither the inflation rate nor real interest rates.


b

Economics

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In the efficiency wage model with the efficiency wage above the market-clearing wage, when employment is at its full-employment level

A) labor supply equals labor demand. B) there is an excess supply of labor. C) there is an excess demand for labor. D) there could be either an excess demand for, or an excess supply of, labor.

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In the long run, following a combination of a negative demand shock and a temporary negative supply shock, ________

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Economics

"Unions in the United States have helped raise the incomes of union workers as compared to nonunion workers." Do you agree or disagree? Why?

What will be an ideal response?

Economics