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When Markets Work Well, the Main Factor Keeping the Economy

Question 18

Multiple Choice

When markets work well, the main factor keeping the economy at full employment and actual production equal to potential output is


A) the adjustment of interest rates in the money market.
B) the adjustment of the demand for products to the supply of products.
C) the adjustment of prices and supply and demand in the labor market.
D) the adjustment of government spending to tax revenue.

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