Suppose workers' and firms' expectations of the price level and productivity are accurate. In this case, an increase in productivity will cause which of the following?
A) an increase in both the real wage and the natural rate of unemployment
B) a decrease in both the real wage and the natural rate of unemployment
C) an increase in the real wage and no change in the natural rate of unemployment
D) a decrease in the real wage and an increase in the natural rate of unemployment
E) none of the above
C
Economics
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The above table gives assets and deposits for a (small) bank. The bank's deposits that are part of M2 are equal to
A) $600. B) $1600. C) $3,100. D) $30. E) $5,100.
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When drawn against current income, the slope of the Cd (r) + Id (r) + G curve is equal to the marginal
A) product of capital. B) product of labor. C) propensity to consume. D) propensity to save.
Economics