Author Question: If the price level rises by 2 percent and workers' money wages increase by 2 percent, then the A) ... (Read 154 times)

erika · **on:** Jun 29, 2018

If the price level rises by 2 percent and workers' money wages increase by 2 percent, then the

A) quantity of labor supply decreases.
B) quantity of labor supply increases.
C) quantity of labor supplied does not change because there is no change in the real wage rate.
D) More information about the dollar change in the price level and money wage rate are needed to answer the question.

Question 2

In the above figure, if the real interest rate is 6 percent, the quantity of loanable funds demanded is

A) 150 billion.
B) 300 billion.
C) 450 billion.
D) 600 billion.