Suppose an economy originally in long-run equilibrium experiences a decrease in aggregate demand. According to the classical model
A) real Gross Domestic Product (GDP) will not change but the price level will fall.
B) real Gross Domestic Product (GDP) will fall, and then the price level will fall also.
C) the price level will not change but real Gross Domestic Product (GDP) will fall.
D) real Gross Domestic Product (GDP) will fall, wages will fall, but the prices of goods and services will stay the same.
A
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Which of the following is assumed to be constant along a demand curve for pet dogs?
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a. all of the reasons given as answers b. to social engineer c. to raise revenue for government spending d. is used to help politicians get elected.
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