Which of the Following Lists of Events Is Consistent with the Long-Run

question 73

Multiple Choice

Which of the following lists of events 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.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a reflexive response without prior conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually triggers a conditioned response.

Classical Conditioning

An instructional process where pairing two stimuli repeatedly results in a response first prompted by the second stimulus, but eventually prompted by only the first stimulus.

Extinction

A process in which the conditioned response is weakened when the conditioned stimulus is repeated without the unconditioned stimulus.