In Keynesian economics the expenditure multiplier suggests that a change in spending causes a(n) _______________ change in GDP.

A decrease in the labor force shifts the production possibilities frontier inwards over time

Indicate whether the statement is true or false

If prices (as measured by the CPI) tripled and nominal wages tripled, what would happen to real wages?

a. They would triple. b. They would remain unchanged. c. They would increase by one-third. d. They would decrease by one-third. e. They would increase by a factor of nine.