Question 22 The economy experiences an increase in the price level and an increase in real domestic output. a likely explanation? O The Stuk of capital has increased O Wage rates have fallen O Interest rates have increased O Net exports have increased Question 23 Menu costs will. O Make prices inflexible downward O Result in price wars between businesses O Increase the legal minimum wage O Increase the amount of training of workers Question 24 The ratchet effect means that: O When aggregate demand decreases. the price remains constant O When aggregate supply increases. the price Icwel decreases O When aggregate supply decreases. the price Icwel increases O When aggregate demand increases. Lhe price level remains constant