This topic contains a solution. Click here to go to the answer

Author Question: Assume the economy is experiencing an inflationary gap, classical economists believe that: a. ... (Read 93 times)

Sportsfan2111

  • Hero Member
  • *****
  • Posts: 585
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
Answer to Question 1

a

Answer to Question 2

False





 

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

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

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

For a complete list of videos, visit our video library