Which of the following statements is correct for the long run?
a. Output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for money; the price level adjusts to balance the supply and demand for loanable funds.
b. Output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for loanable funds; the price level adjusts to balance the supply and demand for money.
c. Output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for loanable funds; the price level is relatively slow to adjust.
d. Output responds to the aggregate demand for goods and services; the interest rate adjusts to balance the supply and demand for loanable funds; the price level adjusts to balance the supply and demand for money.
b
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There is a(n) ________ relationship between a nation's rate of growth in real GDP per capita and bureaucratic inefficiency
A) direct B) inverse C) proportional D) undefined
The law of diminishing marginal returns explains the general shape of the firm's
a. long-run cost curves. b. short-run cost curves. c. both short-run and long-run cost curves. d. The law of diminishing returns has nothing to do with cost curves.
Exhibit 10-8 Aggregate demand and supply
In Exhibit 10-8, if aggregate demand shifts from AD1 to AD2,
A. real GDP will increase from $3.0 to $7.0, and the price level will remain the same. B. real GDP will increase from $3.0 to $4.0, and the price level will remain the same. C. real GDP and the price level will both remain the same. D. real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.
The two flows, or things being exchanged, in the circular flow model are:
A. land and labor. B. inputs and outputs. C. imports and exports. D. inputs/outputs and money.