Question
According to the classical​ model, if the economy starts at full employment an increase in aggregate demand will cause all of the following to occur except
A.
a decrease in wage rates.
B.
a decrease in unemployment.
C.
a rise in real GDP above its​ long-run level.
D.
an increase in input prices.
A.
a decrease in wage rates.
B.
a decrease in unemployment.
C.
a rise in real GDP above its​ long-run level.
D.
an increase in input prices.
Answers
A. a decrease in wage rates.
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