Those Who Believe in the Classical Model Suggest That Expansionary

question 2

Multiple Choice

Those who believe in the classical model suggest that expansionary policies would result in increases in:

• A) output and the aggregate price level.
• B) output with no change in the aggregate price level.
• C) the aggregate price level with no change in output.
• D) unemployment and the output level.

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Definitions:

Performing

The act of fulfilling a command, duty, or role as required or agreed.

Commercially Impracticable

This term refers to situations where fulfilling a contractual obligation has become excessively burdensome or impossible due to unforeseen events, making performance “commercially impracticable.”

Foreseeable

The quality of being able to predict or anticipate an event as likely to happen based on available information.

Performing

The act of carrying out or accomplishing tasks, actions, or performances as required or expected.