In the Classical Model, a Change in Aggregate Demand

question 314

Multiple Choice

In the classical model, a change in aggregate demand

• A) causes a change in long-run real GDP but not in the price level.
• B) causes a change in the price level but not in the long-run real GDP.
• C) causes changes in both the long-run real GDP and in the price level.
• D) has no effect on either real GDP or the price level.

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Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Oxygen

A chemical element essential for most forms of life on Earth, involved in cellular respiration and energy production.

Cardiovascular

Relating to the heart and blood vessels, concerning the circulatory system that transports blood throughout the body.

Musculoskeletal

Pertaining to the muscles and skeleton of the body, often relating to disorders or injuries.