According to new classical model, real wages a. rise when ...

[berenicecastro]

According to new classical model, real wages
 
  a. rise when income rises.
  b. falls when income rises.
  c. do not move within income.
  d. fall if the expected price level is too high and rise if the expected price level is too low.
  e. none of the above.

Question 2

If Y>C+I+G but Md= Ms, then
 
  a. interest rates must rise and output must fall.
  b. both interest rates and output must fall.
  c. interest rates must fall and output must rise.
  d. both interest rates and output must rise.
  e. none of the above.

[xiazhe]

Answer to Question 1

B

Answer to Question 2

B