According to Classical Macroeconomic Theory

question 190

Multiple Choice

According to classical macroeconomic theory,

• A)aggregate supply automatically adjusts to shifts in aggregate demand.
• B)demand creates its own supply.
• C)flexible prices,wages,and interest rates assure full-employment equilibrium.
• D)desired investment typically exceeds desired saving.

---

Definitions:

Computer Revolution

The rapid advancement in computing technology and its widespread integration into all aspects of daily life and society, significantly altering business, education, and social interactions since the late 20th century.

Invention of the Transistor

The development of a semiconductor device used to amplify or switch electronic signals, introduced in 1947, revolutionizing the field of electronics and leading to the creation of modern electronic devices.

Federal Government

The national government of a federal state, which shares power with subnational entities such as states or provinces.