According to Neoclassical Economists,what Would Happen If Total Spending Was

question 72

Multiple Choice

According to neoclassical economists,what would happen if total spending was less than total output?

• A)Product prices would rise,but wage rates would fall.
• B)Product prices would fall,but wage rates would rise.
• C)Nominal GDP would rise,but real GDP would remain constant.
• D)Both product prices and wage rates would fall.
• E)Both product prices and wage rates would rise.

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Definitions:

Electricity-Generating Capacity

The total amount of electrical power that generating equipment can supply to a grid or system at a given time.

Rival In Consumption

A characteristic of a good whereby its consumption by one individual decreases its availability for consumption by another.

Allocate Resources

The process of distributing available resources among various projects or business units.

Markets

Places or systems in which goods, services, and assets are exchanged, usually with prices determined by supply and demand.