Starting from short-run equilibrium, the following occurs: the U.S. dollar depreciates and wage rates rise. Moreover, the effect on the economy from the dollar depreciating is stronger than the effect on the economy from rising wage rates.What is the effect on the price level and Real GDP in the short run?

Suppose that the Bank of Japan buys yen-denominated assets with U.S. dollar assets. Everything else held constant, this transaction will cause ________ in the foreign assets held by the Federal Reserve and ________ in the U.S. monetary base

A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease

Price will always exceed marginal cost for the profit-maximizing monopolist, or any price-setter firm for that matter

Indicate whether the statement is true or false