According to the Classical School of Economics, If Aggregate Demand

Multiple Choice

According to the classical school of economics, if aggregate demand were to decrease and the economy were to experience some unemployment:

A) the economy would remain at that rate of unemployment indefinitely.
B) prices and wages would fall until the economy returned to full employment.
C) the supply of money would increase until the economy returned to full employment.
D) government purchases of goods and services would increase until the economy returned to full employment.