Once wartime spending is under way and production is diverted ...

[SAVANNAHHOOPER23]

Once wartime spending is under way and production is diverted away from household consumption items and private investment goods,
 
  (a) real Gross National Product will likely fall.
  (b) the money supply will automatically increase.
  (c) inflation will likely rear its ugly head if productivity
  does not advance.
  (d) production and employment will fall.

Question 2

The classical and Monetarist models agree that
 
  a. the use of fiscal policy can stabilize output.
  b. money demand is inherently unstable.
  c. the public has perfect information about the price level.
  d. increases in the money supply are the primary cause of inflation.
  e. none of the above

[connor417]

Answer to Question 1

(c)

Answer to Question 2

D

[SAVANNAHHOOPER23]

Gracias!

[jordangronback]

Excellent