According to Classical Economists,changes in Aggregate Demand Have Little Effect

question 88

Multiple Choice

According to classical economists,changes in aggregate demand have little effect on the overall economy,and therefore

• A) the government will need to stimulate aggregate demand.
• B) long-run aggregate supply is the primary source of economic growth.
• C) prices are quite rigid and inflexible.
• D) unemployment will tend to persist over time.
• E) long-run aggregate supply is irrelevant in determining growth.

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Definitions:

Carnaval

An annual festival characterized by music, dancing, and the use of masquerade, held in the days leading up to Lent, especially famous in Brazil.

Heterophilous

characterized by or involving interaction between individuals that are different in some demographic or psychological attributes.

Polymorphic

In computing, it refers to the ability of objects to process data differently based on their data type or class; in biology, it indicates the occurrence of two or more clearly different morphs or forms.

Monomorphic

Characterized by having a single shape or form, often used in the context of genes or polymorphism.