In the long run, a sustained increase in money supply growth relative to the growth rate of potential real output will most likely:
a. cause the nominal interest rate to fall

In the computation of GDP, Social Security payments count as

A) transfer payments and are included in GDP. B) transfer payments and are not included in GDP. C) government expenditure on goods and services and are included in GDP. D) government expenditure on goods and services and are not included in GDP.

If the price level rises by 4 percent and workers' money wage rates increase by 2 percent, then the

A) quantity of labor supplied decreases. B) quantity of labor supplied increases. C) quantity of labor supplied does not change because there is no change in the real wage rate. D) the supply curve of labor shifts rightward.