A union that pursued a policy of restricting entry over time into the union would
A. see real wages hold constant over time at whatever premium they could get initially.
B. generate rising real wages for its membership over time as long as demand for union workers increased over time.
C. also have to negotiate to be sure that all the members were able to find jobs.
D. fail to obtain benefits for their workers in excess of what the workers would get under open markets.
Answer: B
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If the Fed wants to lower the nominal interest rate in the short run, the Fed ________ the growth rate of the quantity of money
A) raises B) lowers C) first lowers and then raises D) does not change E) None of the above answers is correct because the premise of the question is wrong since the Fed cannot affect the nominal interest rate, only the real interest rate.
Monetary policy is conducted
A) only by the Federal Reserve. B) by the Federal Reserve and the President of the United States. C) by the Federal Reserve, the President of the United States, and Congress. D) by the Federal Reserve with veto power residing with the President of the United States.