A decrease in the money wage rate
A) increases the long-run aggregate supply.
B) decreases the long-run aggregate supply.
C) increases the short-run aggregate supply.
D) decreases the short-run aggregate supply.
C
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If the U.S. government can run chronic budget deficits, why can't state governments do the same?
A) Conservatives have more power in state legislatures than in the U.S. Congress. B) Voters do not believe in budget deficits and they control state governments. C) Most states have no income tax. D) State constitutions require balanced budgets. E) States must rely on taxation for the funds to repay creditors.
In long-run equilibrium after a permanent money-supply increase there follows:
A) an increase in exchange rate, E. B) a decrease in exchange rate, E. C) an increase in output, Y. D) a decrease in output, Y. E) an unchanged exchange rate, E.
Demand facing an individual, perfectly competitive firm is
A) perfectly inelastic at the quantity the firm chooses to produce. B) perfectly inelastic at the quantity determined by market forces. C) perfectly elastic at the price the firm chooses to charge. D) perfectly elastic at the price determined by market forces.
The importance of the bank-lending channel of monetary policy transmission:
A. has become more important as technology has solved the problems of information and moral hazard. B. becomes more important the more important banks are as a source of funds for firms and individuals. C. is likely to become more important with the growth of loan brokers and asset-backed securities. D. none of the answers given is correct.