Suppose the economy is on the intermediate range of the aggregate ...

[penguins]

Suppose the economy is on the intermediate range of the aggregate supply curve. Which of the following would reduce both real GDP and the price level?
 a. A decrease in aggregate supply.
  b. An increase in aggregate supply.
  c. A decrease in aggregate demand.
  d. An increase in aggregate demand.

Question 2

If the economy is not operating at full-employment real GDP, classical economists prescribe a government policy of nonintervention.
 a. True
  b. False
  Indicate whether the statement is true or false

[taylorsonier]

Answer to Question 1

c

Answer to Question 2

True