In the DMP model, A) Firms maximize profits. B) Firms ...

[rosent76]

In the DMP model,
 
  A) Firms maximize profits.
  B) Firms determine how much effort they should put into filling job vacancies.
  C) Firms decide whether or not to enter the labor market by posting vacancies.
  D) Firms decide whether or not to retain or fire workers.

Question 2

In a model with money neutrality, how much should the money supply be increased to obtain a 1 increase in nominal output?
 
  A) -1
  B) between 0 and 1
  C) 1
  D) It cannot be done.

[meryzewe]

Answer to Question 1

C

Answer to Question 2

C

[rosent76]

Wow, this really help

[tranoy]

Thanks for the timely response, appreciate it