The maximum increase in the money supply possible from a deposit of $D into the banking system where R is the reserve requirement is

Explain what will happen to the equilibrium real wage and quantity of labor for each of the following scenarios, and use a graph of the aggregate labor market to show the changes

a. The government decreases income tax rates. b. The skill level of workers increases. c. A hurricane destroys a large portion of the capital stock. d. Workers increase their preference of labor over leisure. e. A technological change occurs that increases the productivity of all workers, and at the same time the government increases income tax rates. f. The overall skill level of workers decreases, and at the same time household wealth increases.

A natural monopoly has a. constant average costs cost over the relevant range of output. b. economies of scale over the relevant range of output

c. constant returns to scale over the relevant range of output. d. diseconomies of scale over the relevant range of output.