According to classical economics:
a. real GDP is determined by aggregate demand, while the equilibrium price level is determined by aggregate supply.
b. both real GDP and price level are determined by aggregate demand.
c. both real GDP and price level are determined by aggregate supply.
d. real GDP is determined by aggregate supply, while the equilibrium price level is determined by aggregate demand.
e. price level cannot be changed as prices and wages are perfectly rigid.
d
You might also like to view...
In what two ways does trade benefit consumers when firms are monopolistically competitive?
a. better quality products, increased information b. higher incomes, more dependable products d. lots of bells and whistles, higher wages d. lower prices, more variety
Capital gains are the profit earned from the sale of
A) stocks. B) real estate. C) bonds. D) all of the above.