The main avenue by which a temporary change in government purchases in the classical model affects the labor supply is by
A) changing the population.
B) affecting the value of the stock market.
C) increasing business confidence.
D) affecting workers' wealth.
D
Economics
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"The long-run Phillips curve is vertical at the expected rate of inflation." Is the previous statement correct or incorrect?
What will be an ideal response?
Economics
The aggregate demand curve is downward sloping because as the price level increase the
A) purchasing power of wealth decreases B) demand for imports decreases C) demand for interest-sensitive expenditures increases D) demand for domestically produced substitute goods increases E) real value of fixed assets increases
Economics