This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume the economy is experiencing an inflationary gap, classical economists believe that: a. ... (Read 110 times)

Sportsfan2111

  • Hero Member
  • *****
  • Posts: 585
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aburgess

  • Sr. Member
  • ****
  • Posts: 361
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

False


Sportsfan2111

  • Hero Member
  • *****
  • Posts: 585
Reply #2 on: Jun 30, 2018
Thank you


aburgess

  • Sr. Member
  • ****
  • Posts: 361
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Mason Williams - Classical Gas Mason Williams - Classical Gas
Empathy draws a more positive response from the patient because it is based on the willingness of th Empathy draws a more positive response from the patient because it is based on the willingness of th
Classical-Conditioning Activity Classical-Conditioning Activity
The Power of Classical Conditioning The Power of Classical Conditioning
The fiscal policy to counter an inflationary gap is a(n) The fiscal policy to counter an inflationary gap is a(n)
Consider a two-period economy with no investment opportunities: first and second period output ... Consider a two-period economy with no investment opportunities: first and second period output ...
Video: ATPase function - membrane transport, contractile proteins and synthesis

For a complete list of videos, visit our video library