Multiple Choice
Which of the following is true in the classical model?
A) A spontaneous increase in spending can cause an increase in output and employment.
B) An increase in output and employment can cause a decrease in spending.
C) A spontaneous decrease in spending can cause an increase in output and employment.
D) An increase in output and employment can cause an increase in spending.
E) A spontaneous decrease in spending can cause a decrease in output and an increase in employment.
Correct Answer:
Verified
Correct Answer:
Verified
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