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:

Outcome Values

The perceived or actual benefits, costs, or worth of the results from decisions or actions in a specific context.

Resistance Points

The least favorable outcomes that individuals or parties are willing to accept during a negotiation.

Opening Offers

Initial proposals made during negotiations, serving as a starting point for discussions.

Settlements

Agreements reached by parties in a dispute, often involving compromise to resolve differences.