A way in which government can attempt to solve the problems caused by information asymmetry in the marketplace is:

If nominal GDP is $8 trillion, and the money supply is $2 trillion, velocity is

A) 0.25. B) 4. C) 8. D) 16.

If a union is successful in negotiating a wage rate which is above the market clearing wage, then which of the following would not occur?

A) The higher wages attract more workers leading to a shortage of jobs. B) Management may replace part of the workforce with machinery. C) To handle the surplus of labor the union will form a closed shop. D) The union may shift the supply of labor curve by developing methods to ration jobs.