Steve can tell if his car has been fixed or not—it works, or it doesn't—but he cannot tell how it was fixed. The car repair is a(n)

If the demand for money increases as a result of a(n) _______ in the price level, the interest rate will ______.

a) increase; increase b) increase; decrease c) decrease; increase d) decrease; decrease

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

a. The labor supply will stay unchanged until the wages paid to pear pickers change. b. The labor supply will decrease. c. The labor supply will increase. d. The labor supply may fall or rise, depending on the price of pears.