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:

Appropriateness

The quality of being suitable or fitting for a specific context, circumstance, or purpose.

Multicultural

Relating to or containing several cultural or ethnic groups within a society.

Tourist Approach

A way of exploring or engaging with new environments or cultures superficially, similar to how a tourist might experience a destination without deep immersion.

Trivial

Of very little importance or value; insignificant.