The Main Difference Between the Classical Model of the Price

question 107

Multiple Choice

The main difference between the classical model of the price level and the modern understanding of the relationship between the money supply, the price level, and real GDP is that according to classical economists, _____, while today's economists _____.

• A) money is neutral in the long run; do not consider money to be neutral in the long run.
• B) the adjustment of prices takes some time; expect changes in the money supply to be instantaneous.
• C) did not consider money to be neutral in the long run; consider money neutral in the long run.
• D) the adjustment of prices to changes in the money supply is instantaneous; argue that this adjustment process takes some time.

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Definitions:

France

A country located in Western Europe known for its rich history, cultural significance, and influential role in global affairs.

High-level Radioactive Wastes

Extremely hazardous materials that remain radioactive for long periods, primarily produced from the spent fuel of nuclear reactors.

Technological Impossibility

A situation or condition where a desired technological solution cannot be achieved with current scientific knowledge or resources.

Burying Radioactive Wastes

The disposal method of radioactive materials by placing them in deep geological formations.