In the Classical model, aggregate demand determines the
A) level of real output.
B) the level of employment.
C) the price level.
D) the velocity of money.

Question

Quizplus · Accepted Answer

In the Classical model, aggregate demand primarily influences the price level, as real output and employment are determined by supply-side factors, and the velocity of money is considered constant.

In the Classical Model, Aggregate Demand Determines the