Comparing M1 and M2 we know that
A) M1 is larger because it contains currency.
B) M2 is approximately equal to M1.
C) M2 is larger because it contains M1 and other assets.
D) M2 is larger because it contains more liquid assets than does M1.
Question 2
If the price level rises by 3 percent and workers' money wage rate increase by 1 percent, then the
A) quantity of labor supplied decreases.
B) quantity of labor supplied increases.
C) quantity of labor supplied does not change because there is no change in the real wage rate.
D) real wage rate increases.
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