31.   Nevertheless, since a requirement of rationality is that the subjective expectation of the price level,, should equal the objective conditional mathematical expectation for, it follows that.

32.   If the actual price level in t were equal to the expected price level,.

33.   Why do suppliers, including the suppliers of factor services, increase output in the short run as a result of an increase in the absolute price level?

34.   An increase in aggregate demand and the consequent increase in the absolute price level affect all islands equally, though the mechanism of demand diffusion is unclear.

35.   The consequent rise in the level of output raises the price level relative to the level of money wages, i.e. it reduces the real wage rate.

36.   In the new classical model such exact anticipation will generate -- random errors apart-a perfect forecast of the price level in period t.

37.   With a constant nominal stock of fiat money, a falling price level raises, which raises consumption expenditure, which in turn raises the level of aggregate demand.

38.   The stock of money therefore determines the price level, and the rate of increase in money supply determines the rate of inflation.

39.   Minimum price levels equal to those applied to EC catches will be more rigidly enforced.

40.   Changes in the overall price level have been ignored.