In the Classical Model

question 86

Multiple Choice

In the classical model

• A) the level of real GDP per year does not depend on the level of aggregate demand.
• B) the level of GDP is demand determined.
• C) changes in aggregate supply affect the price level, not real GDP.
• D) the level of GDP determines prices independent of demand.

---

Definitions:

Representative Sample

A subset of a population that accurately reflects the larger group, used to make inferences about the population's characteristics.

Population

All the cases in a group being studied, from which samples may be drawn. (Note: Except for national studies, this does not refer to a country’s whole population.)

Independent Variable

In an experiment, the variable that is manipulated by the researcher to observe its effect on the dependent variable.

Negatively Correlated

Describes a relationship between two variables in which one variable increases as the other decreases, and vice versa.