If the demand curve is a horizontal line,

Classical growth theory predicts that economic growth

A) is merely an illusion. B) will continue at the classical rate of 3 percent forever. C) occurs because of hard-working citizens. D) decreases the supply of labor. E) will eventually stop because of population growth.

An argument in favor of the Federal Reserve adopting inflation targeting is that in the long run, the Fed can have an impact on inflation but not on real GDP

Indicate whether the statement is true or false