Which of the following is true in the classical model?
a. A spontaneous increase in spending can cause an increase in output and employment.
b. An increase in output and employment can cause a decrease in spending.
c. A spontaneous decrease in spending can cause an increase in output and employment.
d. An increase in output and employment can cause an increase in spending.
e. A spontaneous decrease in spending can cause a decrease in output and an increase in employment.
D
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Describe four of the five major income maintenance programs in the United States that were discussed in the text
What will be an ideal response?
The demand for money will increase when either the price level or real GDP increases
a. True b. False Indicate whether the statement is true or false
Macroeconomics is converging with microeconomics because
A) macroeconomic relationships depend on microeconomic behavior. B) macroeconomics studies total output. C) government deficits and unemployment go together. D) inflation means a general increase in prices. E) microeconomic theories are easily testable whereas macroeconomic theories are difficult to test.
Taxes affect market participants by increasing the price paid by the buyer and received by the seller
a. True b. False Indicate whether the statement is true or false