A low rate of expected inflation tends to lead to a ________ rate of actual inflation and a high rate of expected inflation tends to lead to a ________ rate of actual inflation.

Transfer payments are subtracted from national income to get to personal income

Indicate whether the statement is true or false

For a given increase in aggregate demand, the steeper the short-run aggregate supply curve: a. the larger the increase in investment expenditure. b. the smaller the increase in the price level

c. the smaller the increase in real GDP. d. the larger the increase in real GDP. e. the smaller the increase in real interest rate.