Oligopolists may charge a price lower than the profit maximizing price to discourage new firms from entering a market

If an increase in inflation is expected, which of the following events is the least likely to occur?

a. There will be an upward movement along the long-run Phillips curve. b. Nominal GDP will increase. c. Nominal wage rates will increase at the same rate as expected inflation. d. A worker's reservation wage will rise at the same rate as expected inflation. e. Unemployment rate will increase.

When there are few unemployed resources, additional spending will tend to

a. flow directly to the unemployed resources, so that the multiplier can be maintained at 1/1-mpc. b. increase the marginal propensity to consume, and thereby increase the size of the multiplier. c. increase the demand for resources and drive prices downward, increasing the size of the multiplier. d. bid resources away from other activities and drive prices upward, reducing the size of the multiplier.