Author Question: A policy to increase aggregate demand to cure a recessionary gap may succeed; however, inflation is ... (Read 71 times)

michelleunicorn · **on:** Jun 30, 2018

A policy to increase aggregate demand to cure a recessionary gap may succeed; however, inflation is a likely result.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If self-correction causes prices to fall less than nominal wages, both output and real wages will decrease.
a. True
b. False
Indicate whether the statement is true or false