In the classical model, an increase in the unemployment rate:
A. will persist when the reduction in output is caused by a reduction in aggregate demand.
B. is a signal of demand-pull inflation.
C.will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand.
D.will likely be temporary.
2. When a nation has high economic growth, it has
a high level of real Gross Domestic Product (GDP).
a high level of per capita real Gross Domestic Product (GDP).
a large increase in personal income.
a large increase in per capita real Gross Domestic Product (GDP).