Chapter 33Aggregate Demand and Aggregate SupplyTRUE/FALSE1.According to classical macroeconomic theory, changes in the money supply change nominal but not real variables.ANS:TDIF:1REF:33-2NAT:AnalyticLOC:Aggregate demand and aggregate supplyTOP:Classical economicsMSC:Definitional2.Because economists understand what things change GDP, they can predict recessions with a fair amount of accuracy.ANS:FDIF:1REF:33-1NAT:AnalyticLOC:Aggregate demand and aggregate
