In the case of an increase in government spending where the price ...

[drink]

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]

Answer to Question 1

E

Answer to Question 2

D