The Classical Macroeconomic Model Proposes That

Multiple Choice

The Classical macroeconomic model proposes that

A) government intervention is required to help the economy reach its potential.
B) real GDP equals potential GDP as long as inflation equals zero.
C) changes in the quantity of money are critical in driving economic growth.
D) markets work efficiently to produce the best macroeconomic outcomes.
E) socialism produces the most efficient economic outcomes for a society.