Which of the Following Is a TRUE Statement

question 344

Multiple Choice

Which of the following is a TRUE statement?

• A) A decrease in aggregate demand was not possible according to the classical economists but was possible according to Keynes.
• B) A decrease in aggregate demand has no short-run effects according to the classical economists but had significant effects according to Keynes.
• C) Classical economists believed real GDP adjusted more than prices when aggregate demand fell, while Keynes argued that prices adjusted more than output.
• D) Classical economists believed price adjusted more than output when aggregate demand fell, while Keynes argued real GDP adjusted more than prices.

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Definitions:

Acids

Chemical substances that release hydrogen ions when dissolved in water, exhibiting a sour taste and capable of turning blue litmus paper red.

Wound

An injury to living tissue, especially an injury involving a cut or break in the skin.

Living Tissue

Biological tissue consisting of living cells and the materials surrounding them, functioning as part of an organism.

Injury

Physical harm or damage to the body caused by external force or substance.