In the classical model, a change in aggregate demand
A) causes changes in both the long-run real GDP and in the price level.
B) causes a change in long-run real GDP but not in the price level.
C) causes a change in the price level but not in the long-run real GDP.
D) has no effect on either real GDP or the price level.
C
Economics
You might also like to view...
What are the main arguments for and against Fed independence?
What will be an ideal response?
Economics
In the kinked-demand model of a noncollusive oligopoly, if one firm decreases its price, the most likely reaction of the other firms will be to:
A. increase their prices. B. not change their prices. C. decrease their prices. D. fix prices.
Economics