If the realized real interest rate in an economy is 6%, the realized inflation rate is 8%, and the expected inflation rate is 8%, then the nominal interest rate in the economy is:

In Figure 13-3 above, given the unstable demand for money and a stable commodity demand, a stable output level at C would best be promoted by

A) targeting interest rates by the Fed. B) decreasing taxes. C) increasing expenditures by the government. D) decreasing expenditures by the government.

In the classical model, a decrease in immigration would

a. decrease labor supply, increase the real wage, and decrease output. b. increase labor supply and the real wage, and decrease output. c. increase labor demand and the real wage, and increase output. d. reduce real wages and reduce output.