If interest rates, prices, and output are all rising, then according to the Keynesian model, these changes must be caused by
a. an increase in aggregate supply.
b. a shift to the right of the LM curve.
c. a shift to the right of the LM curve.
d. a shift up in the IS curve.
e. none of the above.
Question 2
The equilibrium real wage is 25, the money supply equals 15, and k equals 3 . If equilibrium output is 10 then the equilibrium nominal wage is
a. 3.
b. 4.5.
c. .22
d. 5
