Given the reserve-holding ratio e and the fraction of deposits held as cash c, the money multiplier becomes

Nominal and real wage rates

A) must always change by the same amount. B) must always change in opposite directions by the same amount. C) must always change in the same direction but could change by different amounts. D) could change in opposite directions. E) must always change in the same direction, and the nominal wage rate must change more rapidly than the real wage rate.

In the above figure, at a price of $8, a perfectly competitive firm produces ________ and it ________

A) 0; incurs an economic loss B) 0; makes zero economic profit C) some output; makes zero economic profit D) some output; makes an economic profit