We Depart from the Assumptions of Classical Economics When We

question 9

Multiple Choice

We depart from the assumptions of classical economics when we focus on the relationship between

• A)the quantity of output and the price level.
• B)the quantity of output and the unemployment rate.
• C)the price level and the inflation rate.
• D)inflation and the nominal interest rate.

---

Definitions:

Shares Outstanding

The total number of a company's shares that are currently held by all its shareholders, including share blocks held by institutional investors and restricted shares.

Depreciation Expense

Allocating the cost of a physical asset systematically throughout its period of effectiveness.

Net Capital Spending

Net capital spending is the total expenditure on fixed assets minus any sales of fixed assets, indicating a company's investment in its physical assets.