The quantity theory of money predicts that, in the long run, ...

[Brittanyd9008]

The quantity theory of money predicts that, in the long run, inflation results from the
 
  A) money supply growing at a faster rate than real GDP.
  B) velocity of money growing at a faster rate than real GDP.
  C) velocity of money growing at a lower rate than real GDP.
  D) money supply growing at a lower rate than real GDP.

Question 2

A minimum wage set above the market equilibrium wage rate ______.
 
  A. increases both employment and the quantity of labor supplied
  B. decreases unemployment and raises the wage rate of those employed
  C. raises the wage rate of those employed and increases the supply of jobs
  D. increases unemployment and decreases employment

[blfontai]

Answer to Question 1

A

Answer to Question 2

D By raising the wage rate above the equilibrium wage rate, a minimum wage creates unemployment and decreases em-ployment.