Problem
1. "There is absolutely no distinction between the classical model and the model of long-run equilibrium discussed." Is this statement true or false? Support your answer
2. A nation in which the classical model applies experiences a decline in the quantity of money in circulation. Use an appropriate aggregate demand and aggregate supply diagram to explain what happens to equilibrium real GDP and to the equilibrium price level.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.