According to Classical Theory, If the Aggregate Demand Curve Decreased

question 72

Multiple Choice

According to classical theory, if the aggregate demand curve decreased and the economy experienced unemployment, then:

• A) the economy would remain in this condition indefinitely.
• B) the government must increase spending to restore full employment.
• C) prices and wages would fall quickly to restore full employment.
• D) the supply of money would increase until the economy returned to full employment.

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Definitions:

Parasympathetic Nerve

Part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Nonpharmacologic

Pertaining to methods of treatment that do not involve the use of drugs or medications.

Pain Management

The discipline concerned with the relief of pain and improvement in the quality of life for those living with pain through various therapies and treatments.

Migraine Headaches

A type of headache characterized by intense pulsing or throbbing pain, usually on one side of the head, often accompanied by nausea, vomiting, and sensitivity to light and sound.