An autonomous monetary policy easing temporarily ________ real interest rates and ________ aggregate output in the short run, but in the long run real interest rates and aggregate output return to the equilibrium levels

Early Keynesians concluded that the quantity of money was not important because they assumed

a. low interest elasticity of money demand and high interest elasticity of the demand for output. b. high interest elasticity of money demand and low interest elasticity of the demand for output. c. high interest elasticity of money demand and high interest elasticity of the demand for output. d. both low interest elasticity of money demand and of the demand for output.

A written contract between an employer and an employee creates value as long as:

a. the benefits exceed the costs of forming and enforcing it. b. the productivity of the employee is equivalent to the wage. c. on-the-job learning is unimportant. d. the relationship between the employer and the employee is short-term.