According to Classical Economists,changes in Aggregate Demand Have Little Effect

question 88

Multiple Choice

According to classical economists,changes in aggregate demand have little effect on the overall economy,and therefore

• A) the government will need to stimulate aggregate demand.
• B) long-run aggregate supply is the primary source of economic growth.
• C) prices are quite rigid and inflexible.
• D) unemployment will tend to persist over time.
• E) long-run aggregate supply is irrelevant in determining growth.

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Definitions:

Secret Ballot Elections

A method of voting that ensures privacy for voters, allowing individuals to make choices without disclosing them publicly, commonly used in elections and union representation votes.

Voluntary Agreements

Contracts or settlements reached by mutual consent between parties, often used in labor relations to resolve disputes or establish working conditions.

Punitive Damages

Monetary compensation awarded in civil lawsuits, over and above actual damages, intended to punish the defendant for negligent or malicious conduct and deter future wrongdoing.

Backpay

Compensation for wages lost due to wrongful termination or other employment disputes.