In the Classical Model, What Happens to the Level of Real

question 92

Multiple Choice

In the classical model, what happens to the level of real GDP if aggregate demand increases?

• A) Real GDP increases.
• B) Real GDP decreases.
• C) Real GDP would increase at first, then decrease.
• D) Real GDP would remain the same, at equilibrium.

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Definitions:

Disseminator

A role in communication where information is distributed or spread widely among a group or organization.

Allocating Resources

The process of distributing resources, including time, money, equipment, and labor, among various projects or departments within an organization.

Coordinated Activities

Actions that are planned and executed in sync by different individuals or groups to achieve a common goal or objective.

Management Function

Key activities such as planning, organizing, leading, and controlling that managers perform to efficiently and effectively coordinate the use of resources to achieve organizational goals.