In the long run, a decrease in the money supply growth rate
a. reduces expected inflation so the long-run Phillips curve shifts left.
b. reduces expected inflation so the short-run Phillips curve shifts left.
c. Both A and B are correct.
d. None of the above is correct.
b
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What happens to the equilibrium wage and quantity of labor if output price rises?
A) The equilibrium wage and the equilibrium quantity of labor rise. B) The equilibrium wage rises and the equilibrium quantity of labor falls. C) The equilibrium wage falls and the equilibrium quantity of labor rises. D) The equilibrium wage and the equilibrium quantity of labor fall.
Price floors in agriculture lead to
A) efficient farming techniques being employed. B) surpluses of supported farm products. C) more competition in farming. D) the most efficient market solution.