A change in the level of the supply of money
A) increases the long-run values of the interest rate and real output.
B) decreases the long-run values of the interest rate and real output.
C) has no effect on the long-run values of the interest rate, but may affect real output.
D) has no effect on the long-run values of real output, but may affect the interest rate.
E) has no effect on the long-run values of the interest rate and real output.
E
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If a particular labor market were to convert from a competitive market to a monopsony, what effect would we expect on the number of workers hired? What effect would we expect on the wage paid to workers?
Assume the initial equilibrium is at point D in Figure 9-13. If the market demand curve shifts from D1 to D2, and this results in entry of new firms in the long-run, the new equilibrium in this increasing-cost industry will be
Assume the initial equilibrium is at point D in Figure 9-13. If the market demand curve shifts from D1 to D2, and this results in entry of new firms in the long-run, the new equilibrium in this increasing-cost industry will be
a.
both C and E
b.
both D and E
c.
at a price less than P1
d.
at a price higher than P1
e.
at an output greater than Q1