In the neoclassical view of the macroeconomy, a temporary lack of demand for all goods and services will lead to
A) inflation.
B) a fall in the price level.
C) an expansion.
D) a recession.

Question

Quizplus · Accepted Answer

In the neoclassical view, a temporary lack of demand for goods and services would lead to a fall in the price level, as prices adjust to restore equilibrium in the market. This perspective emphasizes the flexibility of prices and wages in the economy.

In the Neoclassical View of the Macroeconomy, a Temporary Lack