Under perfect price discrimination, marginal profit at each level of output equal

If the money wage rate rises relative to the price level, firms ________ the quantity of labor they demand and workers ________ the quantity of labor they supply

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

The rational expectations hypothesis implies that discretionary macro-policy will:

a. be ineffective, even in the short run. b. be effective in the short run but ineffective in the long run. c. be effective both in the short run and long run. d. make it possible to trade-off a higher rate of inflation for a lower rate of unemployment.