Which One of the Following Statements Is TRUE

question 147

Multiple Choice

Which one of the following statements is TRUE?

• A) The actual behavior of prices and real GDP during the decade of the 1930s is consistent with the classical model.
• B) The actual behavior of prices and real GDP during the decade of the 1930s is consistent with the Keynesian model.
• C) The actual behavior of prices and real GDP during the decade of the 1930s is consistent with the idea that increases in aggregate demand will increase the price level but will leave real GDP unchanged.
• D) The actual behavior of prices and real GDP during the decade of the 1930s is consistent with a vertical short-run aggregate supply curve.

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