In the Classical Model, How Do Shifts in Aggregate Demand

question 178

Multiple Choice

In the classical model, how do shifts in aggregate demand affect real GDP?

• A) Real GDP will remain unchanged.
• B) Increases in aggregate demand increase real GDP.
• C) Increases in aggregate demand decrease real GDP.
• D) Decreases in aggregate demand increase real GDP.

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Definitions:

Sweat Glands

Glands in the skin that produce sweat, aiding in temperature regulation and waste excretion.

Outer Skin Layer

The epidermis, which is the most superficial layer of the skin, acting as a barrier to protect underlying tissues and regulate water loss.

Corn Pads

Small, cushioned med pads designed to relieve pressure and pain from corns on the feet.

Pumice Stone

A light, porous volcanic rock used often in beauty treatments to remove dead skin.