The impact of an increase in the money supply is a(n):
a. increase in the interest rate, which in turn stimulates investment and GDP.
b. decrease in the interest rate, which in turn stimulates investment and GDP.
c. reduction in the general level of prices, which will increase the disposable income of households.
d. improvement in technology, which will stimulate both output and employment.
b
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The decision to undertake product development in monopolistic competition is made by comparing the
A) marginal benefit of product development to the marginal cost of product development. B) average revenue of product development to the average total cost of product development. C) total revenue of product development to the total cost of product development. D) firm's expenditure on product development to expenditures by competing firms.
A situation where a union bargains with a monopsony employer is termed a
A) bilateral monopsony. B) bilateral monopoly. C) bilateral agreement. D) unilateral agreement.
The gap between the value a monopsony places on the last worker hired and the wage paid will increase when
A) the supply curve becomes more elastic at the optimum. B) the supply curve becomes less elastic at the optimum. C) the supply curve becomes horizontal. D) the value of the last unit of labor hired is greater than the cost.
What do prices reflect in a market economy?