Author Question: Which of these is true of the expected price level in a labor market? a. It is the equilibrium ... (Read 115 times)

moongchi · **on:** Jun 30, 2018

Which of these is true of the expected price level in a labor market?
a. It is the equilibrium price level in the short run.
b. It determines the actual price level in the short run.
c. It determines the actual price level in the long run.
d. It allows firms and resource owners to make long-term wage agreements.
e. The difference between the expected and actual price levels is equal to the actual inflation rate.

Question 2

A fall in the discount rate will usually encourage banks to borrow from the Fed and therefore reduce the money supply.
a. True
b. False
Indicate whether the statement is true or false