quiz 10 chapter 10 solutions

quiz 10 chapter 10 solutions - Self-Test Questions Chapter...

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Self-Test Questions Chapter 10 MULTIPLE CHOICE 1. Which of the following statements is true? a. 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 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. ANS: B 2.The main reason the aggregate demand curve slopes downward is because as the price level a. increases, interest rates increase, and investment decreases. b.
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This note was uploaded on 03/30/2011 for the course ECON 2200 taught by Professor N/a during the Fall '10 term at Algonquin College.

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quiz 10 chapter 10 solutions - Self-Test Questions Chapter...

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