The Main Difference Between the Classical Model of the Price

question 150

Multiple Choice

The main difference between the classical model of the price level and the modern understanding of the relationship between the money supply,the price level,and real GDP is that according to classical economists,_____,while today's economists _____.

• A) money is neutral in the long run;do not consider money to be neutral in the long run
• B) the adjustment of prices takes some time;expect changes in the money supply to be instantaneous
• C) who did not consider money to be neutral in the long run;consider money neutral in the long run
• D) the adjustment of prices to changes in the money supply is instantaneous;argue that this adjustment process takes some time

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Definitions:

Income Generation

Refers to the process of earning money through various activities, enabling individuals or groups to sustain their livelihoods.

Managing Households

The act of overseeing the day-to-day operations and finances of a family or household, including budgeting, shopping, and planning.

Scapegoat Theory

The assertion that prejudice and discrimination originate in the frustrations of people who want to blame someone else for their problems.

Cultural Norms

Collective norms and regulations that influence the conduct of individuals within societal collections.