Refer to the labor market diagrams. The case of bilateral monopoly is represented by Figure:

Refer to Figure 10.4. Suppose the economy's equilibrium starts out with an output gap of 1, and real GDP increases so the output gap increases to 2

If the Fed keeps the money supply constant, money demand will ________ and the nominal interest rate will ________. A) increase; increase B) increase; decrease C) increase; remain constant D) remain constant; remain constant

A citizen of Mexico who has lived in El Paso during the past three years has just sent $100 to relatives in Mexico for Christmas. This transaction is

A) counted in the U.S. balance of payments as a current account item. B) counted in the U.S. balance of payments as a surplus item. C) counted in the U.S. balance of payments as an export item. D) none of the above.