Which of the Following Statements Is (Are)correct? in the Classical

question 19

Multiple Choice

Which of the following statements is (are) correct? In the classical system,

• A)aggregate demand is the primary determinate of the natural rate of output and employment.
• B)both output and employment are self-adjusting towards the natural rates of output and employment.
• C)changes in aggregate supply drives changes in output in the short-run and in the long-run.
• D)only output is self-adjusting to the supply-determined full-employment levels.

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Definitions:

Legal Restrictions

Regulations or limitations imposed by law on certain actions or operations in a business context.

Memorable

Describes something that is easily remembered because of its uniqueness, significance, or emotional impact.

Brand Name

Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller’s products or services.

Feedback Loop

is a process in which the outcomes of a system are circled back and used as input, allowing continuous improvement and adaptation.