The Classical model of the closed economy in the long-run predicts that..

a) in long-run equilibrium the level of real output produced, consumption, investment, the real interest rate and real rental prices of both labour and capital are all constant.

b) the level of real output produced is unknown unless you have enough information about the government budget balance.

c) none of the other choices are correct.

d)only investment, national saving & the real interest rate can be determined.

e)the level of real consumption cannot generally be determined as model curves keep shifting around.

f)we cannot determine the real wage until we have determined the level of unemployment.

g)aggregate saving is the gap between aggregate income and expenditure

h)aggregate real output grows at rate n