Refer to the figure above. What is the price that a perfectly competitive firm would charge?

Assume individuals consider only the short-run effects of changes in future macro variables when forming expectations of future output and future interest rates. A permanent increase in the money supply, with no other policy change implemented or anticipated, will most likely cause

A) an increase in the current interest rate. B) an increase in future output and an increase in the future interest rate. C) an unknown effect on the current interest rate. D) all of the above E) none of the above

When a union successfully raises the wages of its members, it will also

a. increase total productivity, which must rise in proportion to the wage rate. b. encourage employers to find a substitute for the union labor. c. raise the wages of nonunion workers. d. increase the share of income allocated to labor as opposed to capital.