If the price level rises by 3 percent and workers' money wage rates increase by 2 percent, then the
A) quantity of labor demanded will decrease.
B) quantity of labor demanded will increase.
C) quantity of labor demanded does not change because there is no change in the real wage rate.
D) real wage rate increases.
B
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From an economic perspective, there is "too little" pollution in a market if
a. The profits of businesses are not maximized b. The marginal benefits of a polluting activity exceed the marginal costs c. The marginal costs of a polluting activity exceed the marginal benefits d. The net social benefits of pollution are zero e. The net private benefits of pollution are zero
According to classical macroeconomic theory, the price level, but not real GDP, are affected by changes in the
a) money supply. b) labor supply. c) supply schedule. d) aggregate supply.