According to the classical view,if consumer demand slowed down,
A) Prices would decrease,and the economy would return to its long-term growth trend.
B) Prices would increase,and the economy would return to its long-term growth trend.
C) Wages would increase,and the economy would return to its long-term growth trend.
D) Investment and government demand would increase,and the economy would return to its long-term growth trenD.Through the adjustment of prices,the economy quickly rebounds to its potential.
Correct Answer:
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Q3: The study of aggregate economic activity for
Q7: Unlike the classical economists,Keynes asserted that
A)The economy
Q10: Say's Law states that
A)Supply creates its own
Q13: Based on the classical view,
A)Unemployment never occurs.
B)Cyclical
Q14: According to Keynes,which of the following should
Q15: According to Keynes,when the economy falters,the government
Q16: Which of the following is true about
Q17: According to classical economists,market-driven economies
A)Are typically self-adjusting.
B)Are
Q18: The inflation-adjusted value of all goods and
Q20: Real GDP is better than nominal GDP
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