The fact that some resource prices are fixed by contracts help ...

[B]

The fact that some resource prices are fixed by contracts help explain why firms:
 a. increase output in the short run when the price level increases.
 b. keep production levels constant in the short run when the price level decreases.
  c. sell output in the short run at fixed prices.
 d. increase output in the long run when the price level increases.
 e. decrease production when nominal wages fall in the long run.

Question 2

Which of the following changes will cause a downward movement along the money demand curve?
 a. An increase in the interest rate
  b. A decrease in the interest rate
  c. A decrease in real GDP
 d. An increase in real GDP
 e. An increase in the price level

[manuelcastillo]

Answer to Question 1

a

Answer to Question 2

b

[B]

Thanks for the timely response, appreciate it

[recede]

Gracias!