Question 8 If the short-run IS–LMequilibrium occurs at a level of income below the natural level of output, then in the long run the price level will ______, shifting the ______ curve to the right and returning output to the natural level. A. decrease; ISB. increase; LMC. increase; ISD. decrease; LM
Question 9 1.The Pigou effect:
Question 10 The debt-deflation hypothesis explains the fall in income as a consequence of unexpected deflation transferring wealth ______, and that creditors have ______ propensity to consume than debtors.