Author Question: In a perfectly competitive market, firms take: a. the money wage as exogenous, the price level as ... (Read 64 times)

mspears3 · **on:** Jun 30, 2018

In a perfectly competitive market, firms take:

a. the money wage as exogenous, the price level as endogenous.
b. the money wage and price level as exogenous, the quantity of labor as endogenous.
c. the money wage and price level as endogenous.
d. the quantity of labor as exogenous.

Question 2

Assume the marginal propensity to consume is .8 . To offset a fall in income of 1,000, the government should

a. increase taxes by 200.
b. raise taxes by 250.
c. increase government spending and taxes by 1,000.
d. cut taxes by 200.
e. both c and d.