According to Classical Macroeconomic Theory

question 14

Multiple Choice

According to classical macroeconomic theory,

• A)output is determined by the supplies of capital and labor and the available production technology.
• B)for any given level of output,the interest rate adjusts to balance the supply of,and demand for,loanable funds.
• C)given output and the interest rate,the price level adjusts to balance the supply of,and demand for,money.
• D)All of the above are correct.

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Definitions:

Multiply

The mathematical operation of increasing one number by another number, essentially repeated addition.

Simplify

To alter a mathematical expression or equation to make it easier to understand or work with by reducing it to its most basic form.

Multiply

The mathematical operation of repeated addition of a number by itself a specified number of times.

Simplify

The process of reducing an expression to its simplest form.