Which of the following statements is (are) correct? In the classical system,
a. aggregate demand is the primary determinate of the natural rate of output and employment.
b. both output and employment are self-adjusting towards the natural rates of output and employment.
c. changes in aggregate supply drives changes in output in the short-run and in the long-run.
d. only output is self-adjusting to the supply-determined full-employment levels.
Question 2
The position of the Keynesian aggregate demand schedule does not depend on the
a. level of government spending.
b. level of tax collections.
c. level of autonomous investment expenditures.
d. quantity of money.
e. the price of inputs such as oil.
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