According to new classical economists, if the Fed ________ the money supply after it announces it will do so, output remains constant and the price level ________.

The law of demand refers to the:

a. tendency of prices to increase as more units of a product are demanded. b. increase in price that results from an increase in demand for a good with a limited supply. c. inverse relationship between the price of a good and the quantity of the good demanded. d. increase in the quantity of a good available as the price of the good increases.

When the collective bargaining process fails to produce an acceptable contract, the union can attempt to extract a higher wage from a monopsonist by

a. bringing in more workers b. allowing the workers to negotiate their own individual terms c. shifting the MLC curve downward d. going on strike e. increasing the return to monopsony power