Author Question: Assuming that there is an excess supply of money in the classical model, then a. a matching ... (Read 73 times)

ec501234 · **on:** Jun 30, 2018

Assuming that there is an excess supply of money in the classical model, then

a. a matching excess demand for commodities will lower the aggregate price level.
b. a corresponding excess demand for commodities will drive the aggregate price level up.
c. an equal excess demand for commodities will not affect the price level.
d. None of the above

Question 2

The United States and other industrialized countries experienced rising inflation accompanied by a recession during the 1970s. This phenomenon was described as (a)

a. hyperinflation.
b. stagnation.
c. stagflation.
d. depression.