In the Classical Model, a Rightward Shift in the Aggregate

question 332

Multiple Choice

In the classical model, a rightward shift in the aggregate demand curve will, in the long run,

• A) increase real GDP and the price level.
• B) increase real GDP and will not change the price level.
• C) decrease real GDP and will not change the price level.
• D) not change real GDP and will increase the price level.

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Definitions:

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Absolute Sensory Threshold

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Any object or event that elicits a sensory or behavioral response in an organism.

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