This means there will be an increase in the price level. When prices rise, this means the LM curve must be shifting in. You can also see this outcome by looking at the modified Philips Curve given in Prof. Brinner s slides. Consumption spending depends on income rather than wealth. Consumption spending should vary widely from year to year.
Consumers look ahead to the future in making current spending decisions.
All of the above. None of the above. This is the condition profit maximization gives you. The natural rate of unemployment will decrease. None of the above.