The term classical refers to an economic theory which states that ...

[colton]

The term classical refers to an economic theory which states that over a relatively short period of time, wages and prices will adjust quickly to bring the economy back to full employment.
 
  Indicate whether the statement is true or false

Question 2

When the aggregate demand curve shifts ________ than the long-run aggregate supply shifts rightward, the result will be inflation.
 
  A) rightward at a faster rate B) leftward at a slower rate
  C) leftward at the same rate D) rightward at a slower rate

[b614102004]

Answer to Question 1

TRUE

Answer to Question 2

A