According to economists, the fixed-price model of macroeconomic equilibrium depicts the modern economy most closely because it assumes that aggregate…

According to economists, the fixed-price model of macroeconomic equilibrium depicts the modern economy most closely because it assumes that aggregate supply is independent of price.

• True
• False

The government sector sells resource services to households and buys goods and services from firms.

• True
• False

According to the equation of exchange, a contractionary monetary policy must be adopted to offset any decrease in the velocity of money.

• True
• False