The economy is in long-run equilibrium when there is a correctly anticipated increase in aggregate demand. According to new classical theory, the price level will __________ and Real GDP will __________

Which of the following actions is not an example of the production coordination provided by firms?

A) Manage production activities of workers B) Pay wages to workers C) Establish industry safety regulations D) Set the production schedule for each week

Which of the following creates a positive social rate of return?

a. Providing a free secondary education to the public b. Paying higher wages to workers with college degrees c. Offering government grants to private universities d. Earning an advanced degree at a public university