Siegnorage is equal to
A) the rate of inflation.
B) one divided by the rate of inflation.
C) real money balances.
D) the percentage growth rate of nominal money.
E) the percentage growth rate of nominal money times real money balances.
E
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During an economic expansion, the demand for money ________ because ________
A) decreases; nominal GDP increases B) increases; real GDP increases C) increases; nominal GDP does not change D) does not change; people make more purchases with credit cards E) decreases; real GDP increases
In the classical model, a tax on labor supply will
a. decrease the demand for labor, increase the real wage, decrease output, and reduce the price level. b. decrease the supply of labor, increase real wages, decrease output, and increase the price level. c. decrease the demand for labor, the real wage, decrease output, and increase the price level. d. have no effect on the labor market, but reduce output and increase the price level. e. increase both labor demand and supply, which will increase output and the price level.