Author Question: Compensation of employees is the largest component of GDP using the income approach. a. True b. ... (Read 65 times)

Cooldude101 · **on:** Jun 30, 2018

Compensation of employees is the largest component of GDP using the income approach.
a. True
b. False
Indicate whether the statement is true or false

Question 2

According to classical macroeconomic theory, if real GDP is below the full-employment level, then an increase in aggregate demand will result in which of the following changes in equilibrium?
a. Real GDP will rise, but the price level will remain constant.
b. Real GDP and the price level will both rise.
c. Real GDP will remain unchanged but the price level will rise.
d. None of the above.