Figure 7-4 -According to the Classical Economists When Output Y Rises Above

Multiple Choice

Figure 7-4

-According to the classical economists when output Y rises above the natural rate of employment,wages and prices would

A) fall causing output to rise;unemployment would be permanent.
B) rise causing output to rise;increased employment would be temporary.
C) rise causing output to fall;increased employment would be temporary.
D) fall causing output to fall;unemployment would be temporary.