If the price level rises above what was expected and nominal wages are fixed, then
a. production becomes less profitable so firms will hire fewer workers.
b. production becomes less profitable so firms will hire more workers.
c. production becomes more profitable so firms will hire fewer workers.
d. production becomes more profitable so firms will hire more workers.
d
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In the Keynesian model in the long run, an increase in the money supply will cause
A) an increase in output and a decrease in the real interest rate. B) a decrease in the real interest rate but no change in output. C) an increase in the real interest rate and an increase in output. D) no change in either the real interest rate or output.
If citizens are not very mobile among governments _____
a. there is no intergovernmental competition b. intergovernmental competition is ineffective c. intergovernmental competition is effective because individuals can compare their government with nearby governments d. the urban sprawl will be lessened
Carlos pays his cable bill using his bank's internet banking web site to withdraw funds from his checking account. This transaction is a(n):
A. e-money transaction. B. automated clearinghouse transaction (ACH). C. Fedwire transaction. D. digitized-check transaction.
In the graph shown, what would shift the WAS curve from WAS0 to WAS1?
A. Domestic reservation wages fall. B. Government runs contractionary policy. C. Input prices fall. D. The country's exchange rate appreciates.