According to the new classical model, changes in aggregate demand change real GDP
A) only when the changes in aggregate demand are unexpected.
B) all of the time.
C) only when the changes in aggregate demand are expected.
D) only when the short- run aggregate supply curve is vertical.
Correct Answer:
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Q120: As far as demand- pull inflation goes,
Q121: Critics of the real business cycle theory
Q122: Q124: An increase in the money wage rate Q126: The economy is at potential GDP when Q127: Starting from a position of long- run Q128: A demand- pull inflation is initially characterised Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents