According to classical theory, a shift in aggregate demand will affect
A) the price level only.
B) real Gross Domestic Product (GDP) only.
C) the level of employment only.
D) both real Gross Domestic Product (GDP) and the level of employment.
A
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If a perfectly competitive firm is a price taker, then _____
a. pressure from competing firms will force it to accept the prevailing market price b. it will be a relatively large player compared to its competitors in the overall market c. it will increase or decrease its output to vary the total quantity supplied in the market d. quality differences will be very perceptible and will play a major role in consumers' decisions
The underground economy—the informal sector—can be a significant drag on the economies of developing countries. Why are firms in the informal sector often less efficient than firms in the formal sector?
What will be an ideal response?