Suppose We Are at the Natural Real GDP When the Aggregate

question 55

Multiple Choice

Suppose we are at the natural real GDP when the aggregate demand curve suddenly shifts downward.In Classical macroeconomics,the price level would ________,and real output would ________.

• A)remain unchanged,also remain unchanged
• B)remain unchanged,fall below natural real GDP until the aggregate demand curve shifts back up
• C)fall,fall briefly then return to natural real GDP
• D)fall,fall below natural real GDP until the aggregate demand curve shifts back up

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Definitions:

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