Which Statement Is Consistent with the Long-Run Theories Studied

question 96

Multiple Choice

Which statement 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:

Somatosensory

Relating to the body's sensory system that processes touch, temperature, pain, and proprioception.

Motor Systems

The components of the central and peripheral nervous system that are involved in the movement control of muscles.

CNS

The central nervous system, consisting of the brain and the spinal cord, which processes and transmits neural information.

Force

A physical quantity that represents the push or pull on an object, having both magnitude and direction, and is capable of causing changes in the motion of the object.