Arrange the following in the correct sequence to explain the determination of national income under the Classical model:
A) The market clears as wages and prices adjust.
B) An increase in aggregate demand leads to higher output.
C) Output is determined by the factors of production and their prices.
D) Full employment is assumed in the long run.
1
C – D – A – B
2
D – A – C – B
3
A – C – B – D
4
B – C – D – A