In the classical model, an increase in aggregate demand will cause
A) an increase in actual output, or Gross Domestic Product (GDP).
B) a decrease in actual output, or Gross Domestic Product (GDP).
C) a decrease in price level.
D) an increase in price level.
D
You might also like to view...
Free markets produce allocatively efficient outcomes and have no flaws
a. True b. False Indicate whether the statement is true or false
If the APS falls by .03, how much does total saving fall?
C = $7 trillion Disposable income = $10 trillion Autonomous consumption = $3.5 trillion?
Answer the following statements true (T) or false (F)
1. A major advantage of a partnership is the legal separation of personal and partnership assets. 2. In a corporate form of business enterprise, both profits and dividends are subject to income tax. 3. In determining what and how much to produce, the market economy works in a democratic manner based on dollar votes. 4. Government intervention in market economies was and is necessary to remedy the inequities that evolved from economic liberalism.
Ceteris paribus, how does an expansion in the United States affect U.S. net exports?
What will be an ideal response?