In the long run, an increase in the money supply
a. leaves prices and unemployment unchanged.
b. raises prices and unemployment.
c. raises prices and leaves unemployment unchanged.
d. leaves prices unchanged and reduces unemployment.
c
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People's incomes are relatively low when they are young, reach a peak in middle age, and then decline. This fact helps explain:
A. the wide variations of Gini ratios among nations. B. the equality-efficiency trade-off. C. why the lifetime distribution of income is more equal than the distribution in any given year. D. why the lifetime distribution of income is less equal than the distribution in any given year.
Evidence in support of the hypothesis that unions increase the productivity of union workers is
A) the fact that union wages are greater than nonunion wages. B) there is an excess supply of labor at the union wage rate. C) that unionized firms face lower turnover rates than nonunion firms do. D) that most contracts are settled without a strike.
The firms in an oligopoly market structure agree to collude because:
a. it helps them to earn more profits. b. each firm wants to know the strategy of its rivals. c. each firm wants to charge a lower price for its product than its rivals. d. the firms want to maintain a healthy relationship with each other. e. it helps them to enjoy economies of scale.
We observed that the price of a good rises and the quantity purchased also rises. Everything else being equal, it is consistent that
a. the price of a substitute good fell. b. the price of a complement rose. c. income rose. d. costs of inputs increased.