In the classical model A) a decrease in aggregate demand will ...

[burton19126]

In the classical model
 
  A) a decrease in aggregate demand will lead to a decrease in the price level and a decrease in real GDP.
  B) changes in aggregate supply leave real GDP unchanged.
  C) a decrease in aggregate demand will lead to an increase in the price level and a decrease in real GDP.
  D) changes in aggregate demand affect only the price level, not real GDP.

Question 2

A 5 percent tax is going to be applied to a 100,000 tax base. What can be said about the revenue collected assuming dynamic tax analysis?
 
  A) The total revenue will be zero.
  B) The total revenue will be between 0 and 5,000.
  C) The total revenue will be 5,000.
  D) There is not enough information to determine what revenues will equal.

[phuda]

Answer to Question 1

D

Answer to Question 2

B

[burton19126]

Thank you

[phuda]

No problemo