According to Classical Economists, When Aggregate Demand Decreases

question 250

Multiple Choice

According to classical economists, when aggregate demand decreases

• A) unemployment is reduced, the price level increases, and equilibrium real GDP is reached.
• B) unemployment is reduced, the price level decreases, and equilibrium real GDP is reached.
• C) unemployment temporarily increases, the price level increases, and equilibrium real GDP is reached.
• D) unemployment temporarily increases, the price level decreases, and equilibrium real GDP is reached.

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, aimed at standardizing practices across states to facilitate easier trade and commerce.

Breach

The violation or non-fulfillment of a legal obligation, contract, or duty, whether by omission or commission.

Implied Warranty

A legal assumption in commerce that ensures the goods sold meet certain quality and usability standards, even if not expressly stated in a contract.

Particular Purpose

Refers to a specific reason or intention for which something is used, often implicating that the product or service is suitable for that intended use.