Multiple Choice
According to classical economics:
A) real GDP is determined by aggregate demand, while the equilibrium price level is determined by aggregate supply.
B) both real GDP and price level are determined by aggregate demand.
C) both real GDP and price level are determined by aggregate supply.
D) real GDP is determined by aggregate supply, while the equilibrium price level is determined by aggregate demand.
E) price level cannot be changed as prices and wages are perfectly rigid.
Correct Answer:
Verified
Correct Answer:
Verified
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