In economics, the planning horizon is defined as
A. the long run, during which all inputs are variable.
B. the period of time for which technology is fixed.
C. the shortest time period over which the firm can make decisions.
D. the immediate future, such as the next day that any action can be taken.
Answer: A
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The most efficient point on the production possibilities curve is the midpoint on the curve
a. True b. False Indicate whether the statement is true or false
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and current international transactions become more negative (or less positive). b. Real GDP rises, and current international transactions become more negative (or less positive). c. Real GDP falls, and current international transactions rises. d. Real GDP rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.