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Author Question: According to new classical model, real wages a. rise when income rises. b. falls when income ... (Read 123 times)

berenicecastro

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  • Posts: 581
on: Jun 30, 2018
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

  • Sr. Member
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  • Posts: 331
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

B


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