Which of the Following Is True of the Classical Model

question 43

Multiple Choice

Which of the following is true of the classical model?

• A)Changes in aggregate demand does not have any impact on the aggregate price level.
• B)The aggregate supply curve is perfectly elastic.
• C)An increase in aggregate demand increases the price level, output remaining unchanged.
• D)Changes in aggregate demand determines the equilibrium output of the economy.
• E)Real GDP and price level remain unchanged irrespective of changes in aggregate demand and supply.

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Definitions:

Registered Democrats

People who are officially enrolled as Democratic Party members with voting rights in the United States.

Registered Republicans

Individuals officially registered to vote as members of the Republican Party in the United States.

Pooled Variance T-test

A statistical test that combines the variances of two samples to test the hypothesis that the means of two populations are equal under the assumption of equal variances.

Degrees Of Freedom

The number of independent pieces of information in a dataset available for estimating parameters or calculating a statistic, usually defined as the number of observations minus the number of parameters being estimated.