In the Classical Model, an Increase in Aggregate Demand Will

question 319

Multiple Choice

In the classical model, an increase in aggregate demand will cause

• A) an increase in actual output, or Gross Domestic Product (GDP).
• B) a decrease in actual output, or Gross Domestic Product (GDP).
• C) an increase in price level.
• D) a decrease in price level.

---

Definitions:

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Gray Matter

Regions of the brain and spinal cord that are primarily made up of neuronal cell bodies and are involved in muscle control and sensory perception such as seeing and hearing, memory, emotions, and decision making.

Myelinated Axons

Axons that are covered with a fatty substance called myelin, which increases the speed at which electrical impulses propagate along the nerve cell.

Unmyelinated Axons

Nerve fibers lacking a myelin sheath, resulting in slower signal transmission compared to myelinated axons.