According to classical theory, if the aggregate demand curve decreased and the economy experienced unemployment, then:
a. the economy would remain in this condition indefinitely.
b. the government must increase spending to restore full employment.
c. prices and wages would fall quickly to restore full employment.
d. the supply of money would increase until the economy returned to full employment.
c
Economics
You might also like to view...
In general, the lower the exercise price relative to the current spot rate price of the currency, the more valuable
A) the put option. B) the call option. C) the arbitrage operation. D) the triangular arbitrage.
Economics
Eligibility for income assistance benefits requires a prior financial contribution from the individual covered; eligibility for social insurance programs does not
a. True b. False
Economics