In a classical model
A)equilibrium real GDP is supply determined.
B)equilibrium real GDP is demand determined.
C)equilibrium real GDP is determined by both aggregate supply and aggregate demand.
D)equilibrium real GDP is neither determined by aggregate supply nor by aggregate demand.

Question

Quizplus · Accepted Answer

In the classical model, equilibrium real GDP is determined by the supply side factors, such as labor, capital, and technology, rather than demand.

In a Classical Model