A policy to increase aggregate demand to cure a recessionary gap ...

[michelleunicorn]

A policy to increase aggregate demand to cure a recessionary gap may succeed; however, inflation is a likely result.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If self-correction causes prices to fall less than nominal wages, both output and real wages will decrease.
 a. True
  b. False
  Indicate whether the statement is true or false

[patma1981]

Answer to Question 1

True

Answer to Question 2

True

[michelleunicorn]

Wow, this really help

[laurnthompson]

Thanks for the timely response, appreciate it