Classical Economists Point Out That

question 240

Multiple Choice

Classical economists point out that:

• A) there is a trade-off between unemployment and inflation.
• B) an increase in the money supply leads to a proportional rise in the price level.
• C) government spending can affect aggregate demand.
• D) there is a possibility of a liquidity trap.

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Definitions:

Chunking

A cognitive strategy for organizing information into more manageable parts or groups to enhance learning and memory recall.

Displacement

A psychological defense mechanism in which a person redirects an emotional response from the rightful recipient to another, less threatening source.

Rehearsal

A cognitive process involving the repetition of information to be remembered, enhancing memory retention.

Elaborative Rehearsal

A memory strategy that involves relating new information to something that is already known.