In the classical model, aggregate demand and aggregate supply will

A. intersect at the point of full employment.
B. intersect at less than full employment.
C. not intersect.
D. not exist.


Answer: A

Economics

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Please use the following statements to answer this question:

I. The process of testing and revising theories is central to the development of economics as a science. II. Theory is imperfect and may not adequately describe economic behavior in some cases. A) I and II are true. B) I is true and II is false. C) I is false and II is true. D) I and II are false.

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The Coase theorem reminds us that efficiency is all about ____________________ and says nothing about ______________________.

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Expansionary fiscal policy normally lowers interest rates

a. True b. False Indicate whether the statement is true or false

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