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This is intermediate macroeconomic questions STATE WHETHER TRUE OR FALSE 1. The main difference between the Keynesian sticky wage model and the Classical model is

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This is intermediate macroeconomic questions

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STATE WHETHER TRUE OR FALSE 1. The main difference between the Keynesian sticky wage model and the Classical model is that the nominal wage rate is assumed to be fixed in the long run. 2. The classical dichotomy exists in models in which the price level and real variables can be determined separately. 3. Indexation is less valuable, and therefore less likely, in times of low inflation. 4. Though employment is affected by changes in the real interest rate in the Keynesian sticky wage model, unemployment is not. 5. A decrease in W will cause the aggregate supply curve to shift to the left. 6. An increase in total factor productivity leads to an increase in the aggregate supply curve. 7. A decrease in the real interest rate causes the IS curve to shift to the right. 8. A decrease in the real interest rate causes the investment to increase which causes the IS curve to shift to the right. 9. The nominal money supply in the United States is determined entirely by the Federal Reserve. 10. If the Federal Reserve adopts a "tight" monetary policy in which the money supply is decreased, the LM curve will shift to the left

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