In the Fooling Model,should an Expansion of Aggregate Demand Cause

question 55

Multiple Choice

In the fooling model,should an expansion of aggregate demand cause fooling,the actual real wage ________ while the expected real wage ________.

• A)rises,rises
• B)rises,remains constant
• C)falls,falls
• D)falls,remains constant
• E)falls,rises

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Definitions:

Respiratory Conditions

A category of diseases that affect the lungs and breathing, such as asthma or chronic obstructive pulmonary disease (COPD).

Influenza

A contagious respiratory illness caused by influenza viruses, characterized by symptoms like fever, cough, and muscle aches.

COLA

An acronym for Cost of Living Adjustment, which is a periodic increase in wages to match or surpass increases in consumer prices.