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Classical Economists Believe That When Aggregate Demand Changes,the Economy Remains

Question 143

Multiple Choice

Classical economists believe that when aggregate demand changes,the economy remains at full employment because


A) changes in aggregate demand do not affect prices.
B) prices are very flexible.
C) the government requires that the economy perform at full employment.
D) international trade offsets any changes in demand.
E) consumers and producers are not a part of aggregate demand.

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