An important feature of the DMP model is that A) would-be ...

[swpotter12]

An important feature of the DMP model is that
 
  A) would-be workers care not just about the market wage, but about the chances of finding work.
  B) firms can fire workers.
  C) workers can choose to shirk on the job.
  D) firms maximize revenue.

Question 2

Under a fixed exchange rate system, if the government decides to increase the fixed exchange rate, net exports will ________ and the IS curve will shift to the ________.
 
  A) increase; left
  B) increase; right
  C) decrease; left
  D) decrease; right

[fauacakatahaias]

Answer to Question 1

A

Answer to Question 2

C