Author Question: If the price level increases by more than expected, output can be expected to decrease as a result. ... (Read 33 times)

Lobcity · **on:** Jun 30, 2018

If the price level increases by more than expected, output can be expected to decrease as a result.
a. True
b. False
Indicate whether the statement is true or false

Question 2

One of the reasons fiscal and monetary policy can stimulate output and employment in the short run is that nominal wages increase faster than the price level.
a. True
b. False
Indicate whether the statement is true or false