A fall in the expected price level leads to an expectation that real wages will ____________, which will cause people to work __________, shifting the SRAS curve _______________
A) rise; more; rightward
B) rise; less; leftward
C) fall; more; rightward
D) fall; less; leftward
A
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Which of the following is one source of disagreement between economists?
A. Some facts about the economy are unknown. B. Economists differ in their political persuasions. C. Economic theory may not always give an unambiguous answer to a question. D. Solving one problem may make another problem worse. E. All of these responses are correct.
The purchasing power of money decreases as the price level increases
Indicate whether the statement is true or false
In a command economy, the ultimate decision about what to produce is left to
A) buyers. B) the government. C) sellers. D) households.
The best argument against monetarists' arguments that steady money growth would prevent fluctuations in inflation and unemployment is that:
a. the government has best control over fiscal policy and should focus on that. b. large fluctuations in the money supply cannot occur because the supply of money is limited. c. steady money growth does not necessarily mean steady aggregate demand if velocity is not stable. d. steady growth in the money supply percents fluctuations in output only if aggregate prices are constant.