According to classical theory, a shift in aggregate demand will ...

[Shelles]

According to classical theory, a shift in aggregate demand will affect
 
  A) the price level only.
  B) real Gross Domestic Product (GDP) only.
  C) the level of employment only.
  D) both real Gross Domestic Product (GDP) and the level of employment.

Question 2

Which of the following statements is FALSE?
 
  A) Economists empirically test their models.
  B) Economic models are not used to forecast.
  C) An economic model should capture only the essential relationships that are sufficient to analyze the particular problem being studied.
  D) Economic models relate to behavior rather than to individual thought processes.

[jliusyl]

Answer to Question 1

A

Answer to Question 2

B

[Shelles]

Thanks for the timely response, appreciate it

[carlsona147]

YES! Correct, THANKS for helping me on my review