According to classical macroeconomic theory, changes in the money supply change nominal but not real variables

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

True

Economics

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Based on our understanding of the model presented in Chapter 3, we know with certainty that an equal and simultaneous increase in G and T will cause

A) an increase in output. B) no change in output. C) a reduction in output. D) an increase in investment.

Economics

Even with a tax, the price that consumers pay will be higher than what producers receive.

A. True B. False C. Uncertain

Economics