In a Classical Model

question 148

Multiple Choice

In a classical model

• A)equilibrium real GDP is supply determined.
• B)equilibrium real GDP is demand determined.
• C)equilibrium real GDP is determined by both aggregate supply and aggregate demand.
• D)equilibrium real GDP is neither determined by aggregate supply nor by aggregate demand.

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Definitions:

Northwest Territory

The historical region of the United States that encompassed the area northwest of the Ohio River, established by the Northwest Ordinance of 1787, and fundamental in the country's expansion westward.

Great Lakes

A group of five large freshwater lakes in North America, forming the largest group of freshwater lakes in the world by total surface and volume.

Appalachian Mountains

A mountain range in the eastern United States, extending from the province of Quebec in Canada to central Alabama in the U.S., known for its rich biodiversity and natural resources.

Northwest Ordinance

A law passed in 1787 that provided a model for the organization of territories and set a precedent for the creation of new states.