A Fundamental Feature of Early Classical Macroeconomics Is That

question 80

Multiple Choice

A fundamental feature of early classical macroeconomics is that

• A) aggregate demand and aggregate income are usually unequal.
• B) prices of inputs and outputs are relatively rigid.
• C) the economy's level of employment can remain substantially below its natural level over a prolonged period of time.
• D) the economy can achieve full employment on its own, though there could be temporary periods in which employment falls below the natural level.

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Definitions:

Disbursements Method

A financial accounting method that records the cash disbursements or payments made by a business.

Schedule B

In tax documentation, Schedule B is often used to report interest and dividend income exceeding certain threshold amounts set by tax authorities.

Taxable Interest

Interest income that is subject to income tax, including interest from savings accounts, bonds, loans, and certificates of deposit.

Series EE Bonds

A type of U.S. savings bond that earns interest for up to 30 years, designed for long-term savings.