If the expected inflation rate rises from 3% to 5% when the nominal interest rate is 4%, the Fisher effect asserts that the nominal interest rate would

If the money prices of resources changes, the SAS curve shifts

Indicate whether the statement is true or false

Deviations from the perfectly competitive market can lead to

a. inefficiently high production costs. b. higher prices and smaller outputs. c. less efficient resource allocation. d. All of the above are correct.