Which One of the Following Statements Is TRUE

question 147

Multiple Choice

Which one of the following statements is TRUE?

• A) The actual behavior of prices and real GDP during the decade of the 1930s is consistent with the classical model.
• B) The actual behavior of prices and real GDP during the decade of the 1930s is consistent with the Keynesian model.
• C) The actual behavior of prices and real GDP during the decade of the 1930s is consistent with the idea that increases in aggregate demand will increase the price level but will leave real GDP unchanged.
• D) The actual behavior of prices and real GDP during the decade of the 1930s is consistent with a vertical short-run aggregate supply curve.

---

Definitions:

Moral Obligations

Duties that arise from ethical principles rather than legal requirements.

Promisee

A person to whom a promise is made.

Legal Obligations

Duties enforced by law, requiring individuals or organizations to act or refrain from acting in a certain manner.

Ratified

Confirmed or made official an agreement, treaty, or contract by expressing formal approval or consent.