Multiple Choice
According to Keynesian economics, if there are unutilized resources in the economy and aggregate demand decreases
A) real GDP will rise and price level will remain constant.
B) real GDP will fall and price level will remain constant.
C) real GDP will rise and price level will rise.
D) real GDP will rise and price level will fall.
Correct Answer:

Verified
Correct Answer:
Verified
Q84: A classical model of the economy predicts<br>A)
Q85: In the above figure, what could cause
Q86: In the classical model<br>A) the level of
Q87: Which of the following will NOT shift
Q88: Why is wage and price flexibility an
Q90: "According to Keynes, the economy is essentially
Q91: In the classical model, what occurs if
Q92: In the classical model, what happens to
Q93: Why did the classical economists think that
Q94: Which statement best characterizes the classical economists'