According to the classical model, an increase in aggregate demand would
A) lead the economy to recession.
B) lead the economy to a deflationary cycle.
C) cause an adjustment to a higher price level.
D) raise real Gross Domestic Product (GDP) but leave the price level unchanged.
C
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The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500Using the regular percentage change formula, what is the price elasticity of supply when price decreases from $10 to $5?
A. 0.2 B. 0.5 C. 0.6 D. 1
If people expect the foreign exchange rate for dollars to rise in the future
A) the demand for dollars today decreases. B) the demand for dollars today increases. C) the demand for dollars today is unaffected. D) there is a movement along the demand curve for dollars.
What is the price of a coupon bond that has annual coupon payments of $85, a par value of $1000, a yield to maturity of 10%, and a maturity of three years?
A) $211.38 B) $898.84 C) $962.70 D) $1255.0
According to William Shepherd, in the U.S. economy
a. Herfindahl indexes have been increasing, indicating a decrease in competitiveness b. Herfindahl indexes have been decreasing, indicating a decrease in competitiveness c. the market share of the largest manufacturing firms has increased, indicating a decrease in competitiveness d. competition has decreased because of exports, regulation, and insufficient antitrust activity e. competition has increased because of more imports, deregulation, and antitrust activity