« previous next »

Author Question: In the case of an increase in government spending where the price level varies while the money wage ... (Read 67 times)

drink

  • Hero Member
  • *****
  • Posts: 554
on: Jun 30, 2018
In the case of an increase in government spending where the price level varies while the money wage is fixed, output
 
  a. rises and prices fall by more than if the price level was fixed.
  b. falls and price rise by more than if the price level was fixed.
  c. rises by more and the price level rises by less than if the price level was fixed.
  d. and the price level are fixed.
  e. rises and prices fall by more than if the price level was fixed.

Question 2

In the classical system, the quantity of money
 
  a. determines the price level and, for a given real income, the level of nominal income.
  b. does not affect the equilibrium values of output, employment, and the interest rate.
  c. affects the equilibrium values of output, employment, and the interest rate.
  d. Both a and b
  e. Both a and c


tranoy

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Martin Van Buren, sitting uncomfortably for this engraving, would eventually ascend to the presidenc Martin Van Buren, sitting uncomfortably for this engraving, would eventually ascend to the presidenc
Ripped Money Ripped Money
A typical camshaft-driven high-pressure pump used to increase fuel pressure to 2,000 PSI or higher. A typical camshaft-driven high-pressure pump used to increase fuel pressure to 2,000 PSI or higher.
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Changes in the Level of Education, 1975-2010 Changes in the Level of Education, 1975-2010
Video: Conjunctivitis

For a complete list of videos, visit our video library