Author Question: Assuming the economy is experiencing a recessionary gap, classical economists predict that: a. ... (Read 75 times)

laurencescou · **on:** Jun 30, 2018

Assuming the economy is experiencing a recessionary gap, classical economists predict that:
a. wages will remain fixed.
b. monetary policy will sell government securities.
c. higher wages will shift the short-run aggregate supply curve leftward.
d. lower wages will shift the short-run aggregate supply curve rightward.
e. none of the above.

Question 2

Personal income minus personal taxes equals disposable personal income.
a. True
b. False
Indicate whether the statement is true or false