7. According to Classical economists, the economy is stable in the long run causing unemployment to increase during ting of recession. the economy is atable in the long run and macroeconomic equilibrium can occur at less than full employment. the economy is atable in the long run and self correcting to full employment. the economy is unstable in the long run causing unemployment to increase during time of recession. the economy is unstable in the long run and self correcting to full employment. 8. -Assume a nation's economy is operating in equilibrium. If exports increase and imports decrease, how will output, employment, and price level likely change? Output / Employment / Price Level Increase / Increase / Increase Increase / Increase / Decrease Increase / Decrease / Increase Decrease / Decrease / Increase Decrease / Decrease / Decrease 9. Economists who advocate the Keynesian theory of economics would say that prices and wages are sticky and decreases in AD will decrease employment. sticky and decreases in AD will decrease unemployment. flexible and decreases in AD will decrease employment. flexible and decreases in AD will decrease unemployment. flexible and increases in AD will increase unemployment