If the price level increases by more than expected, output can be ...

[Lobcity]

If the price level increases by more than expected, output can be expected to decrease as a result.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

One of the reasons fiscal and monetary policy can stimulate output and employment in the short run is that nominal wages increase faster than the price level.
 a. True
  b. False
  Indicate whether the statement is true or false

[smrerig]

Answer to Question 1

False

Answer to Question 2

False

[Lobcity]

Thanks for the timely response, appreciate it

[parker125]

Great answer, keep it coming