34) In the simple model of labour supply represented in the figure above, the real wage is equal to (A) ________ and the quantity of labour supplied would be equal to (B) ______

35) The figure above shows a labour market in which a union negotiates the real wage rate with employers. Union-voluntary unemployment is equal to (A) ___; Individual-involuntary unemployment is equal to (B) ____.

36) Which of the following policies would NOT be expected to reduce the equilibrium unemployment rate?

37) Consider the specification of money demand: M = kPY Suppose the actual money supply is M* which is not equal to M; according to the neutrality principle, the variable that would adjust to achieve equilibrium is:

38) Line D above provides a graphical representation of the Cambridge equation specification of the demand for money. P is the price level, M is the demand for a nominal money stock, Y is real GDP and k is the proportion of spending people which to hold in n