According to new classical theory, if policy is correctly anticipated, expectations are formed rationally, and wages and prices are fully flexible, then an increase in aggregate demand will change Real GDP, but not the price level
Indicate whether the statement is true or false
False
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The above figures show the market for hamburger meat. Which figure shows the effect of a decrease in the price of a substitute like hot dogs?
A) Figure A B) Figure B C) Figure C D) Figure D
Compared with other countries in the OECD, French government spending relative to GDP is
A) among the highest. B) about average. C) slightly below average. D) among the lowest.
What is oligopoly? How does oligopoly differ from the other kinds of market structure?
What will be an ideal response?
If the price of a good doubles and quantity supplied triples, then
a. demand is elastic b. demand is inelastic c. supply is inelastic d. supply is elastic e. there is insufficient information to reach any conclusion about the price elasticity of supply