According to the new classical model, changes in aggregate demand change real GDP
A. all of the time.
B. only when the short-run aggregate supply curve is vertical.
C. only when the changes in aggregate demand are expected.
D. only when the changes in aggregate demand are unexpected.
Answer:D
According to the new classical model, changes in aggregate demand change real GDP
A. all of the time. B. only when the short-run aggregate supply curve is vertical. C. only when the changes in aggregate demand are expected. D. only when the changes in aggregate demand are unexpected.