________ is a process of bundling together smaller loans (like mortgages) into standard debt securities

In the classical model, an increasing demand for labor will

a. cause an expansion with higher employment and a higher real wage. b. cause a shortage of labor because the labor market always clears. c. cause a recession with lower employment and a lower real wage. d. cause a recession because wages are fixed in the short run. e. cause an expansion with lower employment and a higher real wage.

The underlying cause of inflation is

A. labor unions demanding higher wages. B. businesses charging higher prices. C. government raising taxes. D. increasing aggregate demand.