In the classical model, aggregate demand and aggregate supply ...

[darbym82]

In the classical model, aggregate demand and aggregate supply will
 
  A) not exist. B) intersect at the point of full employment.
  C) intersect at less than full employment. D) not intersect.

Question 2

In the classical model, an increase in the unemployment rate
 
  A) will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand.
  B) will likely be temporary.
  C) is a signal of demand-pull inflation.
  D) will persist when the reduction in output is caused by a reduction in aggregate demand.

[IAPPLET]

Answer to Question 1

B

Answer to Question 2

B

[darbym82]

Gracias!

[samiel-sayed]

Excellent