In the short-run aggregate demand model, firms are generally assumed to
A) set production goals to enhance worker productivity.
B) respond to changes in demand by adjusting prices until markets clear.
C) operate at capacity to maximize profits in the long run.
D) adjust production levels in response to changes in demand.
E) adjust both prices and production to increase short-run profits.

Question

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The Answer of In the short-run aggregate demand model, firms are generally assumed to
A) set production goals to enhance worker productivity.
B) respond to changes in demand by adjusting prices until markets clear.
C) operate at capacity to maximize profits in the long run.
D) adjust production levels in response to changes in demand.
E) adjust both prices and production to increase short-run profits.

In the Short-Run Aggregate Demand Model, Firms Are Generally Assumed