Business, 27.11.2019 00:31 dwavy29

Select whether the following statements most closely reflect monetarist, rational expectations, or mainstream views. a. anticipated changes in aggregate demand affect only the price level; they have no effect on real output. b. downward wage inflexibility means that declines in aggregate demand can cause long-lasting recession. c. changes in the money supply m increase pq; at first only q rises, because nominal wages are fixed, but once workers adapt their expectations to new realities, p rises and q returns to its former level. d. fiscal and monetary policies smooth out the business cycle. e. the fed should increase the money supply at a fixed annual rate.

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