Question
Macroeconomics Question on Inflation and unemployment
Which of the following factor(s) do NOT affect output and employment in the classical macroeconomic model ?
A
Quantity of money
B
Level of government spending
C
Level of demand for investment goods
D
Technological progress
Answer
Quantity of money
Explanation
Solution
The correct option is (A) : Quantity of money, (B) : Level of government spending and (C) : Level of demand for investment goods.