From the Perspective of Classical Macroeconomic Theory, If Aggregate Spending

question 122

Multiple Choice

From the perspective of classical macroeconomic theory, if aggregate spending was temporarily less than output:

• A) Product price would increase, but resource prices would decrease
• B) Product price would decrease, but resource prices would increase
• C) Product and resource prices would decrease, so that aggregate spending would rise, expanding output
• D) Product and resource prices would increase, so that aggregate spending would equal output