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Author Question: Assume the economy is experiencing an inflationary gap, classical economists believe that: a. ... (Read 31 times)

Sportsfan2111

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on: Jun 30, 2018
Assume the economy is experiencing an inflationary gap, classical economists believe that:
 a. flexible wages will restore full employment.
 b. the federal government should decrease spending to shift the aggregate demand curve leftward.
  c. the Federal Reserve should lower the interest rate.
 d. the federal government should increase spending to shift the aggregate demand curve rightward.

Question 2

If the GDP chain price index in a given year is greater than 100, real GDP in that year would be greater than nominal GDP.
 a. True
  b. False
  Indicate whether the statement is true or false


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aburgess

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

False


Sportsfan2111

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Reply #2 on: Jun 30, 2018
Thank you


aburgess

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Reply #3 on: Jun 30, 2018
No problemo


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