Author Question: In the new classical model, workers and firms try to keep their real wages and relative prices from ... (Read 62 times)

mspears3 · **on:** Jun 30, 2018

In the new classical model, workers and firms try to keep their real wages and relative prices from falling when ________.

A) income falls
B) they expect inflation to rise
C) they expect inflation to fall
D) they expect aggregate demand to fall

Question 2

If the interest rate increases, lifetime wealth (we)

A) increases.
B) stays constant.
C) decreases.
D) changes in an ambiguous way.