Based on what we know about the globalized AS/AD model, the standard model does not include an analysis of:

If the nominal interest rate is 6% and the inflation rate is 3%, the real interest rate is

a. 2% b. 3% c. 6% d. 9%

Deflation is

A. a constant rate of inflation. B. a slow-down in the rate of inflation. C. zero inflation. D. a decline in the average price level.