According to classical economists, when aggregate demand decreases
A) unemployment is reduced, the price level increases, and equilibrium real GDP is reached.
B) unemployment is reduced, the price level decreases, and equilibrium real GDP is reached.
C) unemployment temporarily increases, the price level increases, and equilibrium real GDP is reached.
D) unemployment temporarily increases, the price level decreases, and equilibrium real GDP is reached.
D
You might also like to view...
Refer to Scenario 17.5. If low effort is exerted, expected income is
A) $5000. B) $5500. C) $6000. D) $6500. E) $7000.
An increase in the price of an input will increase the _____ of producing the final good and shift the supply curve of the commodity _____
a. marginal cost; upward b. transaction cost; upward c. marginal cost; downward d. transaction cost; downward