Refer to Table 4.2. If you choose to invest in Japanese bonds, your investment return from Scenario C will be

The more staggered are labor contracts,

A) the more rapidly the economy will adjust to changes in aggregate demand. B) the less rapidly the economy will adjust to changes in aggregate demand. C) the greater the inflationary effects of a given change in money growth in the medium run. D) the less inflationary effects of a given change in money growth in the medium run.

The motivating force behind an increase in supply in a long-run adjustment to equilibrium is

a. lower prices b. economic profits that are present in the short run c. higher profit expectations among owners of firms in the industry, triggered by increased prices d. normal profits witnessed by individuals outside the industry that trigger entry e. the decreases in average cost that can be obtained through economies of scale