If a firm buys its labor in a competitive market, then a short-run increase in the price of the firm's output will cause the firm to
A) offer a higher wage.
B) hire fewer workers.
C) hire more workers.
D) offer a lower wage.
C
Economics
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If the quantity theory of money holds, then in an economy,
A) inflation = growth rate of money supply - growth rate of real GDP. B) inflation = growth rate of money supply + growth rate of real GDP. C) inflation = growth rate of money supply - growth rate of nominal GDP. D) inflation = growth rate of money supply + growth rate of nominal GDP.
Economics
Economic growth requires
A) private foreign investment. B) domestic budget deficits. C) investment in human capital. D) governance according to the will of whoever is in charge.
Economics