In order to understand how the economy works in the short run, we need to
a. study the classical model.
b. study a model in which real and nominal variables interact.
c. understand that "money is a veil.".
d. understand that money is neutral in the short run.
b
Economics
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If the number of firms producing mouthwash increases and consumer preference for mouthwash increases, the equilibrium price of mouthwash will definitely increase
Indicate whether the statement is true or false
Economics
When an economy grows out of a recession, normally the demand for bonds ________ and the supply of bonds ________, everything else held constant
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases
Economics