In the Classical Model

question 300

Multiple Choice

In the classical model

• A) a decrease in aggregate demand will lead to a decrease in the price level and a decrease in real GDP.
• B) changes in aggregate supply leave real GDP unchanged.
• C) a decrease in aggregate demand will lead to an increase in the price level and a decrease in real GDP.
• D) changes in aggregate demand affect only the price level, not real GDP.

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Definitions:

Subconscious

Part of the mind that operates below the level of conscious awareness, influencing thoughts, feelings, and behaviors without one's direct knowledge.

Unconscious Mind

A part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Displacement

In Freudian psychology, the unconscious shifting of an impulse or emotion from its original object to another object.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives to someone else.