Money almost always serves as the standard unit for quoting prices. This is another way of saying money serves as a:
a. medium of exchange.
b. store of value

Refer to Table 4-7. Suppose that the quantity of labor demanded decreases by 80,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

A) W = $8.50; Q = 550,000 B) W = $9.50; Q = 590,000 C) W = $12.50; Q = 630,000 D) W = $9.50; Q = 570,000

If velocity is constant and equal to 2, a $10 billion shift of the LM curve to the left will be produced by a __________ in the money supply

A) $5 billion increase B) $5 billion decrease C) $20 billion increase D) $20 billion decrease