Multiple Choice
Which of the following statements is correct?
A) In the long run, 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) In the long run, 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) In the long run, 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 stuck.
D) In the long run, 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.
Correct Answer:

Verified
Correct Answer:
Verified
Q28: Assume the money market is initially in
Q37: The lag problem associated with monetary policy
Q41: Which of the following shifts aggregate demand
Q43: If the MPC is 0.80 and there
Q79: The multiplier effect is the multiplied impact
Q79: Which of the following properly describes the
Q80: People might deposit more into interest-bearing accounts,<br>A)making
Q82: Which of the following is the most
Q84: The economy is in long-run equilibrium.The aggregate
Q115: An aide to a U.S.Senator computes the