Which of the Following Statements Is Correct

question 35

Multiple Choice

Which of the following statements is correct?

• A)In the short run, output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for money; the price level adjusts to balance the supply and demand for loanable funds.
• B)In the short run, output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for loanable funds; the price level adjusts to balance the supply and demand for money.
• C)In the short run, output responds to the aggregate demand for goods and services; the interest rate adjusts to balance the supply and demand for money; the price level is stuck.
• D)In the short run, output responds to the aggregate demand for goods and services; the interest rate adjusts to balance the supply and demand for loanable funds; the price level adjusts to balance the supply and demand for money.

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Definitions:

University Store

Not specific enough to provide a definition without context but generally refers to a retail outlet or bookstore operated by or on behalf of a college or university.

Sunk Cost

An expense that has been paid and cannot be retrieved.

Expected Cost

An estimate of the cost for a product, project, or operation that is anticipated under normal conditions.

Sell

The act of giving or handing over something in exchange for money.