"Preannounced, stable policies to achieve a low and constant money supply growth and a balanced federal budget are therefore the best way to lower the inflation rate." This statement best illustrates the:

If there is an increase in the price level in the classical model,

a. the equilibrium level of output will remain unchanged. b. real wages remain constant. c. money wages will rise proportionally. d. all of the above.

If the quantity demanded of product S increases as the price of product T decreases, then S and T are complements

a. True b. False Indicate whether the statement is true or false