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.