All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except
A) contracts make prices and wages sticky. B) unions are successful in pushing up wages.
C) menu costs make some prices sticky. D) firms are often slow to adjust wages.
B
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Nominal GDP measures the value of goods and services produced in a given year valued using
A) base year prices. B) future prices. C) prices of the same year. D) constant prices. E) no prices.
A minimum wage law might increase wages without reducing employment if the hiring firm is
A. in perfect competition. B. a monopolist. C. a monopolistic competitor. D. a monopsonist.
The market structure of monopolistic competition exists when
A) there are a small number of interdependent firms that constitute the entire market. B) there is a single producer of a product. C) there are many producers of differentiated products. D) there are many producers of a homogeneous product.
Which of the following is not included in the narrowest definition of the money supply or M1?
A. Transactions account balances. B. Credit card balances. C. Traveler's checks. D. Currency in circulation.