According to the misperceptions theory, after an unanticipated increase in the money supply has occurred, the SRAS curve must shift ________ to restore general equilibrium; as it does so, the price level ________.

In an economic downturn, sticky wages and prices reduce the economy's speed of adjustment because

A) hyperinflation will likely occur. B) businesses are unable to adjust quickly to changes in aggregate demand. C) they cause deflation. D) union workers would likely quit and look for work elsewhere.

A consumer will maximize utility when all income is spent and the marginal utility is equal for all goods

Indicate whether the statement is true or false