If the reserve ratio is designated by "r," the amount of deposits a bank can hold as excess reserves is equal to 1 / (1 - r)

Suppose there is a competitive market for retail workers at a large shopping mall that is large enough to constitute its own labour market. The labour demand curve is QD = 1000 - 20(w). The labour supply curve is QS = 400 + 40(w). Suppose that a union now successfully organizes the workers at this mall and obtains a wage rate of $11 (but does not affect the demand curve). One result is

A) a decrease in employment of 60 workers. B) a decrease in employment of 20 workers. C) an increase in employment of 20 workers. D) an increase in employment of 40 workers. E) a decrease in employment of 40 workers.

Refer to Figure 6-12. Suppose the diagram shows the supply curves for a product in the short run and in the long run. Which supply curve represents supply in the short run and which curve represents supply in the long run?

A) Either SA or SB could represent supply in the long run; in the short run the supply curve must be a horizontal line. B) SA represents supply in the short run and SB represents supply in the long run. C) Either SA or SB could represent supply in the short run; in the long run the supply curve must be a vertical line. D) SB represents supply in the short run and SA represents supply in the long run.