Firms in perfect competition produce the productively efficient output level in the short run and in the long run

In the DMP model

A) the market wage is equal to the marginal product of labor. B) the market wage is equal to the marginal rate of substitution of leisure for consumption. C) the wage is equal to the marginal rate of transformation. D) the wage is determined by bargaining between the firm and the worker.

According to the quantity theory of money, a 10 percent increase in the money supply leads to a 10 percent increase in:

A. velocity. B. unemployment. C. the price level. D. real GDP.