If the wage rate doesn't change but a profit-maximizing competitive firm hires fewer workers, we know that
A) the price of the product increased.
B) technical change occurred that increased labor productivity, reducing the firm's demand for labor.
C) demand for the product fell or there has been a reduction in labor productivity.
D) marginal factor cost increased.
C
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Maintaining the growth of the money supply at a constant rate is an example of
A) an inflation targeting rule. B) a nominal GDP targeting rule. C) discretionary policy. D) a money demand rule. E) a money targeting rule.
Perfect price discrimination
a. is a common occurrence in situations with many buyers. b. occurs fairly often in situations with only a few buyers. c. is only observed in competitive markets. d. rarely occurs because firms do not have sufficient power to differentiate among specific buyers.
the multiplier effect does not occur when autonomous expenditure decreases
a. true b. false
Suppose the government of New Country has fixed the value of its currency, the New Peso, at $1 per New Peso, but the market equilibrium value of the New Peso is $2 per New Peso. In order to maintain the official value of the New Peso the Central Bank of New Country must either ________ domestic interest rates, or ________ the supply of New Pesos by purchasing or increasing their holding of international reserves.
A. lower; decrease B. raise; decrease C. raise; increase D. lower; increase