According to the Classical Model, an Increase in Aggregate Demand

question 247

Multiple Choice

According to the classical model, an increase in aggregate demand would

• A) lead the economy to recession.
• B) lead the economy to a deflationary cycle.
• C) cause an adjustment to a higher price level.
• D) raise real Gross Domestic Product (GDP) but leave the price level unchanged.

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Definitions:

Direct Supervision

A management style where a supervisor closely oversees and controls the work of their subordinates.

Routine Tasks

Repetitive and predictable activities that are part of an individual’s daily work responsibilities.

Labour Coordination

The process of organizing and harmonizing the efforts and activities of workers to achieve efficient production or services.

Spans of Control

The number of employees or subordinates that a manager or supervisor is directly responsible for overseeing.