Asymmetric information exists when one participant in a market transaction has more information than the other participant

If workers and firms know that the Federal Reserve is following an expansionary monetary policy, workers and firms will expect inflation to ________ and will adjust wages so that the real wage ________

A) decrease; decreases B) increase; remains unchanged C) increase; increases D) increase; decreases

Which of the following is an example of a fixed input?

a. The acreage of a farmer's land. b. Machinery. c. The size of a firm's plant. d. All of these.