Which of the Following Is True of the Classical Model

question 43

Multiple Choice

Which of the following is true of the classical model?

• A)Changes in aggregate demand does not have any impact on the aggregate price level.
• B)The aggregate supply curve is perfectly elastic.
• C)An increase in aggregate demand increases the price level, output remaining unchanged.
• D)Changes in aggregate demand determines the equilibrium output of the economy.
• E)Real GDP and price level remain unchanged irrespective of changes in aggregate demand and supply.

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Definitions:

Restroom

A room containing toilets and sinks for the public, employees, or guests to use.

Checking Account

A bank account that allows the account holder to make deposits, withdrawals, and write checks against available funds.

National Guard

A reserve military force composed of state National Guard militia members or units under federally recognized active or inactive armed force service.

Livestock

Domesticated animals raised in an agricultural setting to produce commodities such as food, fiber, and labor.