According to classical theory, a shift in aggregate demand will affect
A. the price level only.
B. both real Gross Domestic Product (GDP) and the level of employment.
C. real Gross Domestic Product (GDP) only.
D. the level of employment only.
Answer: A
You might also like to view...
Which of the following statements correctly describes a competitive market?
A) Buyers and sellers negotiate prices before making exchanges. B) The market price for the same good varies from seller to seller. C) Sometimes, a single seller has the ability to dictate the market price. D) The market price is determined by the interaction of demand and supply.
To lower long-term interest rates, in 2010 the Fed started its new open market operation program to purchase
A) mortgage-backed securities. B) commercial papers. C) long-term Treasuries. D) Treasury bills and Treasury notes.