An Assumption Central to the Short Run Analysis of the Goods

question 26

Multiple Choice

An assumption central to the short run analysis of the goods and services produced by an economy is that

• A) a firm's operating objective is to maximize profits.
• B) consumers operate according to the principle of self-interest.
• C) aggregate demand determines the amount of good produced.
• D) governments fulfill their role of guaranteeing property rights.
• E) monetary policy assures an environment of stable prices.

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