Author Question: Assume the economy is operating at a real GDP above full-employment real GDP. Classical economists ... (Read 97 times)

HCHenry · **on:** Jun 30, 2018

Assume the economy is operating at a real GDP above full-employment real GDP. Classical economists would prescribe which of the following policies?
a. Nonintervention
b. Active monetary policy
c. Contractionary
d. Expansionary

Question 2

If the GDP chain price index in a given year is less 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