If workers and firms know that the Federal Reserve is following an expansionary monetary policy, workers and firms will expect inflation to ________ and will adjust wages so that the real wage ________

The positive relationship between short-run aggregate supply and the price level indicates that, in the short run

A) firms produce more output as the price level falls. B) firms produce more output as the price level rises. C) the money wage rate increases when moving along the short-run aggregate supply curve. D) lower price levels are more profitable for firms.

If the government of a country owes $3,500 billion to the International Monetary Fund and then borrows $300 billion more this year, it implies that the: a. national debt is $300 billion and fiscal deficit is $3.8 trillion. b. national debt is $3,800 billion and fiscal deficit is $300 billion. c. national debt is $4,100 billion

d. fiscal deficit is $3,800 billion. e. national debt and fiscal deficit both equal $3.8 trillion.