According to the new classical view, when the actual price level is greater than the expected price level
A) aggregate output is above the full employment level.
B) aggregate output is below the full employment level.
C) the aggregate supply curve will slope downward.
D) the coefficient a is equal to zero.
A
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Refer to the diagram. Point b would be explained by:
A. an actual rate of inflation that exceeds the expected rate.
B. an actual rate of inflation that is less than the expected rate.
C. cost-push inflation.
D. an increase in long-run aggregate supply.
Medicare costs are high, and rising at rapid rates, because
A. medical technology is advancing and raising costs. B. medical technology is advancing and raising costs, and at the same time there are more and more elderly. C. the elderly have been shown to enjoy hospitals. D. there are more and more elderly.