A change in consumers' expectations about the future will shift both the aggregate expenditure curve and the aggregate demand curve

Recent research by Keynesians and classicals has led to

A) a reconciliation of the types of models they use. B) the recognition by classical economists that prices adjust very slowly. C) convincing evidence that TFP shocks are the dominant force affecting the business cycle. D) the refutation of the efficiency wage model.

The nominal interest rate is

A) the interest rate measured in terms of goods. B) always less than the real interest rate. C) equal to the real interest rate minus the rate of inflation. D) the type of interest rate typically reported in the financial pages of newspapers. E) equal to the expected rate of inflation.