In the Classical Model, a Shift to the Right in Aggregate

question 343

Multiple Choice

In the classical model, a shift to the right in aggregate demand would result in

• A) a permanent increase in unemployment.
• B) a permanent increase in real incomes.
• C) an increase in the price level.
• D) a permanent shift past full employment.

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Definitions:

Final Value

The value of an investment or loan after the application of interest or other financial changes.

Simplify

To alter a complex equation or expression into a simpler form that retains the original meaning or value.

Like Terms

Terms in an algebraic expression that have the same variable raised to the same power and can be combined.

Evaluate

To determine the value of an expression by computing its numerical value.