Refer to Table 9-14. The real average hourly earnings for 1965 in 2010 dollars equal

In combating stagflation, a government-induced:

a. increase in aggregate demand would help reduce inflation but aggravate unemployment. b. decrease in aggregate demand would help reduce unemployment but aggravate inflation. c. increase in aggregate demand would help reduce unemployment but aggravate inflation. d. decrease in aggregate demand would help reduce both unemployment and inflation. e. increase in aggregate demand would help reduce both unemployment and inflation.

Under which type of market structure is the firm’s pricing decision the most difficult?

a. perfect competition b. monopoly c. monopolistic competition d. oligopoly