Classical Economists Believe That

question 255

Multiple Choice

Classical economists believe that:

• A)the long-run aggregate supply curve is vertical, but the short-run aggregate supply curve is horizontal.
• B)fiscal policy changes are best at controlling the business cycle.
• C)increases in the money supply will increase output.
• D)prices are flexible.

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Definitions:

Biased Population

A group in which certain characteristics are over- or underrepresented, leading to skewed or unrepresentative sample outcomes.

Statistically Significant Population

A population size or characteristic in which differences or effects observed are unlikely to be due to chance, typically determined through statistical tests.

Representative Sample

A subset of a population that accurately reflects the members of the entire population, used in research to draw conclusions about the population as a whole.

Random Sample

A method of selecting a sample from a population in which each individual has an equal probability of being chosen.