Multiple Choice
According to classical economists, when aggregate demand decreases
A) unemployment is reduced, the price level increases, and equilibrium real GDP is reached.
B) unemployment is reduced, the price level decreases, and equilibrium real GDP is reached.
C) unemployment temporarily increases, the price level increases, and equilibrium real GDP is reached.
D) unemployment temporarily increases, the price level decreases, and equilibrium real GDP is reached.
Correct Answer:
Verified
Correct Answer:
Verified
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