Assume that a purely competitive firm uses two resources, labor (L) and capital (C), to produce a certain product. In which situation would the firm be maximizing profit?

In the fooling model, should an expansion of aggregate demand cause fooling, the actual real wage ________ while the expected real wage ________

A) rises, rises B) rises, remains constant C) falls, falls D) falls, remains constant E) falls, rises

The supply of dollars in foreign exchange markets is

A) determined by the Federal Reserve's Board of Governors. B) determined by the demand for U.S. goods. C) determined by the U.S. demand for foreign goods. D) a function of the international banking system.