Which of the Following Statements Is Correct for the Short

question 151

Multiple Choice

Which of the following statements is correct for the short run?

• A)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)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)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 relatively slow to adjust.
• D)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:

World Wars

Refers to the two major global conflicts of the 20th century: World War I (1914-1918) and World War II (1939-1945), involving many of the world's nations.

Dominance

The state or condition of having power and influence over others, often observed in social, economic, and ecological contexts.

Economic System

The structure of methods and principles a society uses to produce and distribute goods and services.