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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Pretend

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The understanding that objects continue to exist even when they cannot be observed.

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A method used in developmental psychology to study infants' understanding of the world by gauging their reactions to events that deviate from what they anticipate.