Higher prices can discourage use/consumption, which in turn may better allocate scarce resources.

The labor supply shock hypothesis suggests that

A) the United States and Europe are following similar labor market policies. B) there is a one-way causation from labor productivity to real wage growth. C) slow real wage growth and slow productivity growth are simultaneously determined by the labor market system. D) B and C. E) none of the above.

The perfect competitor's demand and marginal revenue curves ______ identical; the monopolist's demand and marginal revenue curves _______ identical.

Fill in the blank(s) with the appropriate word(s).