Classical Economists Believe That When Aggregate Demand Changes,the Economy Remains

question 143

Multiple Choice

Classical economists believe that when aggregate demand changes,the economy remains at full employment because

• A) changes in aggregate demand do not affect prices.
• B) prices are very flexible.
• C) the government requires that the economy perform at full employment.
• D) international trade offsets any changes in demand.
• E) consumers and producers are not a part of aggregate demand.

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Definitions:

Demand Curve

A visual diagram that illustrates the connection between a product's price and the amount consumers want to purchase.

Paired-comparison Method

A technique used in assessment and decision-making that involves comparing each option with every other option in pairs to judge which is preferable.

Performance Appraisal

A regular review of an employee’s job performance and overall contribution to a company, typically involving feedback and discussions on areas of strength and areas needing improvement.

Individual Employee

Refers to a single worker or staff member within an organization, distinguishing them from groups or teams.