In the classical model, a change in aggregate demand
A) causes changes in both the long-run real GDP and in the price level.
B) causes a change in long-run real GDP but not in the price level.
C) causes a change in the price level but not in the long-run real GDP.
D) has no effect on either real GDP or the price level.
C
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The marginal product of the fourth gizmo worker hired is
A) 1. B) 3. C) 5. D) 10.
The most important characteristic that differentiates one market structure from another is the
a. time it takes for new firms to enter b. amount of short-run economic profit c. degree to which goods complement each other d. number of producers selling in the market e. barriers to entry
Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price
A. P2 and sell Q1 units. B. P1 and sell Q4 units. C. P3 and sell Q3 units. D. P5 and sell Q1 units.
An agreement negotiated by two countries that places a numerical limit on the quantity of a good that can be imported by one country from another country is called
A) an import quota. B) an export quota. C) a non-tariff trade barrier. D) a voluntary export restraint.