Which Statement Is Consistent with the Long-Run Theories Studied

question 96

Multiple Choice

Which statement is consistent with the long-run theories studied?

• A) In the long run, output responds to the aggregate demand and supply of goods and services; the interest rate adjusts to balance the supply and demand for money; and 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, labour, and technology; the interest rate adjusts to balance the supply and demand for loanable funds; and 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, labour, and technology; the interest rate adjusts to balance the supply and demand for loanable funds; and 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; and the price level adjusts to balance the supply and demand for money.

---

Definitions:

Grammarians

Experts or scholars specialized in the rules and principles of grammar, often studying the structure and function of language.

Correct Usage

The appropriate and accurate application of rules or standards within a specific context, such as language grammar or technology.

Tone

The attitude or approach that the writer or speaker takes towards the subject of the message, which can influence the reader's or listener's perception.

Passive Sentences

Sentences in which the subject is acted upon by the verb, emphasizing the action being performed rather than the doer.