According to Classical Macroeconomic Theory,if Real GDP Is Below the Full-Employment

question 170

Multiple Choice

According to classical macroeconomic theory,if real GDP is below the full-employment level,then an increase in aggregate demand will result in which of the following changes in equilibrium?

• A) Real GDP will rise, but the price level will remain constant.
• B) Real GDP and the price level will both rise.
• C) Real GDP will remain unchanged but the price level will rise.
• D) None of the above.

---

Definitions:

Ambulation

The act of walking or moving from one place to another under one's own power, often used in medical contexts to discuss mobility.

Pressure Dressing

A type of bandage applied tightly to a wound to apply pressure and stop bleeding, while also providing support to the injured area.

Toxic Shock Syndrome

A rare, life-threatening complication of certain types of bacterial infections, often associated with tampon use, characterized by sudden high fever, rash, and multi-organ failure.

Erythematous Macular Rash

A skin condition characterized by red, flat spots on the skin, which can indicate a variety of medical concerns.