In a Classical Model

question 148

Multiple Choice

In a classical model

• A)equilibrium real GDP is supply determined.
• B)equilibrium real GDP is demand determined.
• C)equilibrium real GDP is determined by both aggregate supply and aggregate demand.
• D)equilibrium real GDP is neither determined by aggregate supply nor by aggregate demand.

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Definitions:

Side Discussions

Informal or unofficial conversations that occur alongside formal negotiations or meetings, often used to resolve issues in a less formal setting.

Collective Bargaining Agreements

Legal contracts between employers and a body of employees (often a union) that outline wages, hours, and conditions of employment.

Legally Binding

A term, agreement, or contract that is legally binding is one that is enforceable by law, meaning parties must adhere to the terms laid out or face legal consequences.

Public Sector Unions

Labor organizations that represent employees working in government agencies and services, advocating for their members' rights, benefits, and conditions of employment.