« previous next »

Author Question: In the case of an increase in government spending where the price level varies while the money wage ... (Read 70 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?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

This illustration shows the decibel level in various locations and associated with different ... This illustration shows the decibel level in various locations and associated with different ...
Students and Money Students and Money
5-4 The relationship between vapor pressure and temperature—in this case for water. As the ... 5-4 The relationship between vapor pressure and temperature—in this case for water. As the ...
Infant formula is available in several forms and varies in cost and ingredients Infant formula is available in several forms and varies in cost and ingredients
Price of Computers, 1982–2010 Price of Computers, 1982–2010
The Economics of Money, Banking and Financial Markets, Business School Edition The Economics of Money, Banking and Financial Markets, Business School Edition
Video: Calvin cycle (The light-independent reactions )

For a complete list of videos, visit our video library