1. A fall in the expected price level leads to en expectation that real wages will ______ , which will cause people to work ______, shifting the SRAS curve ______.
A rise: more : rightward
B fall: more: rightward
C fall: less: leftward
D Rise: less: leftward
2. In real business cycle theory, Business cycle expansions begin as a result of changes in
A) government spending
B) investment Demand
C) aggregate demand
D) long run aggregate supply
E) consumption