According to classical macroeconomic theory, a. the price level is sticky in the short run and it plays only a minor role in the short-run adjustment process. b. for any given level of output, the interest rate adjusts to balance the supply of, and demand for, money. c. output is determined by the supplies of capital and labor and the available production technology. d. All of the above are correct.
According to classical macroeconomic theory, a. the price level is sticky in the short run and it plays only a minor role in the short-run adjustment process. b. for any given level of output, the interest rate adjusts to balance the supply of, and demand for, money. c. output is determined by the supplies of capital and labor and the available production technology. d. All of the above are correct.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter16: Expectations Theory And The Economy
Section: Chapter Questions
Problem 5QP
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Question
According to classical macroeconomic theory,
a. |
the price level is sticky in the short run and it plays only a minor role in the short-run adjustment process.
|
|
b. |
for any given level of output, the interest rate adjusts to balance the
|
|
c. |
output is determined by the supplies of capital and labor and the available production technology.
|
|
d. |
All of the above are correct.
|
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