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According to the Theory of New Classical Economics, If Business

question 129

Multiple Choice

According to the theory of new classical economics, if business sentiment and investment spending decrease, the aggregate demand curve _____ and the price level falls, while aggregate output_____.


Definitions:

Early Industrial

Referring to the period or stage of development where societies transition from agrarian to industrial economic activities.

Positive Checks

Mechanics that increase mortality rate and decrease population size, as per Thomas Malthus, including famine, war, and disease.

Thomas Malthus

An English economist and demographer known for his theory that population growth would outpace agricultural production, leading to widespread famine and hardship.

Pestilence

A fatal epidemic disease, particularly bubonic plague.

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