If you believe that the economy can achieve full employment without inflation through tax reductions, spending cuts, and deregulation, you are a member in good standing in the

As compared to a firm that competes for labor, a monopsony will:

a. hire fewer workers and pay lower wages. b. hire fewer workers by pay higher wages. c. pay lower wages but hire more workers. d. pay higher wages and hire more workers.

In Year 1, the price level was 120 and the average nominal income was $30,000. In Year 2, the price level was 125 and the average nominal level of income was $32,000. What happened to real income from Year 1 to Year 2?

A.  It fell by $400 B.  It rose by $400 C.  It rose by $600 D.  It rose by $2,000