Multiple Choice
In the short run:
A) price level is fixed at some level, the level of output adjusts to balance the supply and demand for money, and the interest rate responds to changes in aggregate demand and aggregate supply
B) level of output is fixed at some level, the price level adjusts to balance the supply and demand for money, and the interest rate responds to changes in aggregate demand and aggregate supply
C) interest rate is fixed at some level, the price level adjusts to balance the supply and demand for money, and the level of output responds to changes in aggregate demand and aggregate supply
D) price level is fixed at some level, the interest rate adjusts to balance the supply and demand for money, and the level of output responds to changes in aggregate demand and aggregate supply
Correct Answer:
Verified
Correct Answer:
Verified
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