Author Question: An economy in long-run equilibrium experiences an increase in aggregate demand. According to the ... (Read 70 times)

mwit1967

  • Hero Member
  • *****
  • Posts: 501
An economy in long-run equilibrium experiences an increase in aggregate demand. According to the classical model,
 
  A) the price level will increase, but real GDP will not change.
  B) the price level and real GDP will increase at the same time.
  C) the price level will increase, but real GDP will decrease.
  D) the price level will rise first, then real GDP will increase.

Question 2

The consumption function shows how much
 
  A) households plan to consume per year at each possible interest rate.
  B) real disposable income people will earn at each income tax bracket.
  C) households plan to consume per year at each level of real disposable income.
  D) households plan to consume per year at each level of savings.



cswans24

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

A

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

For a complete list of videos, visit our video library