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:

Alternative Hypothesis

A statistical hypothesis that contradicts the null hypothesis, indicating the presence of an effect, difference, or relationship.

Research Question

A precisely formulated question that a study aims to answer, guiding the direction of the research.

P-value

A statistical measure that helps scientists determine the significance of their research results, indicating the probability of observing their results by chance.

Confidence Intervals

A stretch of values, from sample data analysis, that is envisaged to hold the value of an undefined population characteristic.