According to the New Classical Model, Changes in Aggregate Demand

question 113

Multiple Choice

According to the new classical model, changes in aggregate demand change real GDP

• A)only when the changes in aggregate demand are unexpected.
• B)all of the time.
• C)only when the changes in aggregate demand are expected.
• D)only when the short- run aggregate supply curve is vertical.

---

Definitions:

Gradual Change

Incremental alterations, modifications, or developments occurring slowly over a period of time.

Evolutions

The gradual development and progression of species or systems over time, often associated with biological, technological, or organizational changes.

Frame-bending Change

Significant transformation within an organization that alters the existing structures or methods, but does not completely overhaul the organizational framework.

Top-down Change

An approach to organizational change where decisions and initiatives are initiated by higher-level management and disseminated downwards through the hierarchy.