Question

Classical economists traditionally believed that:

a. a change in the money supply can affect real gdp.
b. there are three motives for demanding money.
c. the transactions demand for money influences the velocity of money.
d. the economy does not always operate at full employment.
e. the velocity of money is constant.

Answer 1

One the concepts that economists believe in a classical economy are that "a change in money supply can affect GDP." To add up, a traditional economy mainly bases on original customs and traditions in their economic system, wherein among the common examples of these are rural farms.