In the classical model, an increase in aggregate demand will lead ...

[Jramos095]

In the classical model, an increase in aggregate demand will lead to an increase in wage rates while a decrease in aggregate demand will
 
  A) change the price of capital.
  B) leave wages unchanged since workers will not take a cut in pay.
  C) increase wages since business will be desperate for labor.
  D) decrease wages.

Question 2

According to new growth theory, as technology becomes more important to growth, so does
 
  A) increasing taxes. B) human capital.
  C) military spending. D) increasing trade barriers.

[LegendaryAnswers]

Answer to Question 1

D

Answer to Question 2

B