A Fundamental Feature of Early Classical Macroeconomics Is That

question 127

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 usually relatively rigid.
• C) the economy's level of employment can remain substantially below its natural level over a long period.
• D) the economy can achieve full employment on its own, though there may be short periods in which employment falls below the natural level.

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Definitions:

Before Marriage

Refers to the period or status of individuals' lives before entering into a legally recognized marital union.

Writing Requirement

A legal principle that certain kinds of contracts must be in writing to be enforceable.

Unilateral Promise

A pledge or commitment by one party to perform an act without requiring a reciprocal promise from another party.

Consideration

Something of value that is exchanged between parties in a contract, which is necessary for the agreement to be legally binding.