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:

Autonomy

The capacity to make an informed, un-coerced decision; often discussed in ethical, legal, and medical contexts as a fundamental human right.

Threatened Penalty

A consequence or punishment that is warned to be imposed upon someone for wrongdoing or breaking a rule.

Misapprehension

A misunderstanding or incorrect interpretation of a situation, concept, or fact.

Exploitation

The act of unfairly using someone or something for one's own advantage, often by capitalizing on their vulnerabilities.