Suppose workers' and firms' expectations of the price level and ...

[09madisonrousseau09]

Suppose workers' and firms' expectations of the price level and productivity are accurate. In this case, a reduction in productivity will cause which of the following?
 
  A) a decrease in both the real wage and the natural rate of unemployment
  B) an increase in both the real wage and the natural rate of unemployment
  C) a decrease in the real wage and no change in the natural rate of unemployment
  D) an increase in the real wage and a decrease in the natural rate of unemployment
  E) none of the above

Question 2

Banks are different from other financial intermediaries because
 
  A) banks receive funds and make loans.
  B) some of a bank's deposits are money.
  C) banks can conduct open market operations on their own.
  D) banks do not need to hold reserves against their deposits.
  E) banks are open longer hours.

[nothere]

Answer to Question 1

C

Answer to Question 2

B

[09madisonrousseau09]

Correct answers!

[nothere]

Great! Please up vote