Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the markup will cause
A) an increase in the equilibrium real wage.
B) a reduction in the equilibrium real wage.
C) a reduction in the natural rate of unemployment.
D) both B and C
B
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The law of diminishing marginal utility implies it is possible that the marginal utility of my tenth pistachio nut is less than the marginal utility of my third pistachio nut, other things constant
a. True b. False
An inflation rate above the target rate will result in:
A. a movement up along the monetary policy reaction curve and a rightward shift of the dynamic aggregate demand curve. B. a movement up along the monetary policy reaction curve and a leftward shift of the dynamic aggregate demand curve. C. a movement up along the monetary policy reaction curve and a movement up the dynamic aggregate demand curve. D. a movement down along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve.