Refer to Figure 14.3. Suppose the economy is initially at long-run equilibrium and the economy experiences a demand shock such as a stock market crash. This is best represented by an initial movement from

In the long-run, according to loanable funds theory, the real interest rate is determined by

A. saving and investment B. demand and supply for money C. demand and supply for labor D. aggregate demand and supply

Which of the following is not a characteristic of perfect competition?

a. A commodity product b. A large number of independently acting sellers c. Freedom of entry d. The existence of externalities e. Each firm is a price taker