New Classical Economics Suggests That in the Long-Run Changes in Aggregate

question 83

Multiple Choice

New classical economics suggests that in the long-run changes in aggregate demand will cause:

• A) Only short-run changes in output and employment
• B) Long-run changes in output and employment
• C) Only short-run changes in the price level
• D) No change in output and employment

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Definitions:

Drum Brake System

An older style of brake system where brake shoes press outward against a rotating drum attached to the wheel, slowing the vehicle by friction.

Hygroscopic

A property of substances to absorb moisture from the air.

DOT 3

A type of brake fluid that exceeds certain specifications for boiling point and composition, suitable for many vehicles.

DOT 4

A type of brake fluid designated by the Department of Transportation, having specific boiling point and composition standards for vehicle braking systems.