In the classical model, the equilibrium level of real Gross ...

[cmoore54]

In the classical model, the equilibrium level of real Gross Domestic Product (GDP) is completely supply-determined. Do you agree or disagree? Why?
 
  What will be an ideal response?

Question 2

Each member in a group might do what's best for himself or herself instead of behaving in a way that optimizes the well-being of the entire grou
 
  A) irrational behavior. B) free riding.
  C) Pareto inefficiency. D) disequilibrium.

[nixon_s]

Answer to Question 1

Agree. The long-run aggregate supply curve is vertical, so the equilibrium level of real Gross Domestic Product (GDP) is determined by the location of the aggregate supply curve. Shifts in aggregate demand affect only the price level.

Answer to Question 2

B

[cmoore54]

Thanks for the timely response, appreciate it

[pratush dev]

TYSM