In Figure 45.5, where one union is bargaining against one employer, the lowest possible negotiated wage paid to workers will be Figure 45.5 

Which of the following allow banks to minimize the cost to a business of borrowing?

I. Borrowing long and lending short II. Raising funds from a large number of depositors III. Creating money by lending all their reserves A) I only B) II only C) I and III D) II and III

When the economy is hit by a temporary negative supply shock and the central bank does not respond by changing the autonomous component of monetary policy, then in the long run

A) inflation will be lower. B) output will be at its potential. C) output will be lower. D) inflation will be unchanged. E) both B and D.