If the stock market booms, then
a. aggregate demand increases, which the Fed could offset by increasing the money supply.
b. aggregate supply increases, which the Fed could offset by increasing the money supply.
c. aggregate demand increases, which the Fed could offset by decreasing the money supply.
d. aggregate supply increases, which the Fed could offset by decreasing the money supply.
c
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At the current price of a good, Al's consumer surplus equals 15 and Ben's consumer surplus equals 15. By using two-part pricing, a monopolist could increase his profit by
A) 8. B) 16. C) 15. D) 30.
Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the markup will cause
A) an increase in the equilibrium real wage. B) a reduction in the equilibrium real wage. C) a reduction in the natural rate of unemployment. D) both B and C