Author Question: The transactions demand for money A) varies directly with nominal Gross Domestic Product (GDP). ... (Read 34 times)

magmichele12 · **on:** Jun 29, 2018

The transactions demand for money

A) varies directly with nominal Gross Domestic Product (GDP).
B) varies inversely with nominal Gross Domestic Product (GDP).
C) varies negatively with real nominal Gross Domestic Product (GDP).
D) has no relationship with nominal Gross Domestic Product (GDP).

Question 2

In the classical model,

A) unemployment will never exist since workers will be willing to accept lower wages and will then be able to find work.
B) unemployment will never exist because employers will be willing to pay the wage rate demanded by the workers.
C) wages will go up but never go down.
D) full employment will never be reached.