Classical Economists Point Out That

question 240

Multiple Choice

Classical economists point out that:

• A) there is a trade-off between unemployment and inflation.
• B) an increase in the money supply leads to a proportional rise in the price level.
• C) government spending can affect aggregate demand.
• D) there is a possibility of a liquidity trap.

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Definitions:

Endorphins

Natural chemicals produced in the brain that act as painkillers and are associated with feelings of pleasure and euphoria.

Psychoactive Drugs

Substances that alter brain function, resulting in temporary changes in perception, mood, consciousness, and behavior.

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, reduced muscle activity, and inhibition of nearly all voluntary muscles during rapid eye movement (REM) sleep.

Appetite

The natural desire to satisfy bodily needs for food, influenced by psychological, physiological, and environmental factors.