A rise in the price level causes the demand for money to ________ and the interest rate to ________, everything else held constant
A) decrease; decrease
B) decrease; increase
C) increase; decrease
D) increase; increase
D
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A demand-pull inflation initially is characterized by
A) increasing real output and a labor surplus. B) no change in real output and a labor shortage. C) decreasing real output and a labor surplus. D) decreasing real output and a labor shortage. E) increasing real output and a labor shortage.
Some policymakers claim that raising the minimum wage will result in economic growth. If increasing the minimum wage would actually generate economic growth, we would expect to eventually see nominal wages ________ and unemployment ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Product differentiation in monopolistically competitive markets implies that: a. firms make economic profits in the long run
b. firms will produce at the minimum of the average total cost curve in the long run. c. individual firms face downward-sloping demand curves. d. firms are certain to earn economic profits in the short run.
Why would candy companies in the United States dislike the U.S. trade barriers on imported sugar?
a. Barriers decrease the cost of production, making candy less expensive. b. Barriers decrease the cost of production, making candy more expensive. c. Barriers increase the cost of production, making candy more expensive. d. Barriers increase the cost of production, making candy less expensive.