According to Classical Economics

question 6

Multiple Choice

According to classical economics:

• A)real GDP is determined by aggregate demand, while the equilibrium price level is determined by aggregate supply.
• B)both real GDP and price level are determined by aggregate demand.
• C)both real GDP and price level are determined by aggregate supply.
• D)real GDP is determined by aggregate supply, while the equilibrium price level is determined by aggregate demand.
• E)price level cannot be changed as prices and wages are perfectly rigid.

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Definitions:

Systematic

An approach characterized by step-by-step procedures aimed at ensuring thoroughness and accuracy in achieving a specific goal or solving a problem.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often used when facing complex problems or incomplete information.

Algorithms

Step-by-step procedures or formulas for solving a problem or completing a task.

Dwellings

Places where people live, such as houses, apartments, and other residential structures.