Labor is typically assumed to be the only variable input in very short-run production systems, and the number of variable inputs increases as we lengthen our planning horizon from short run to long run
What happens to the labor demand curve as we move from short run to long run? A) Demand curve becomes less elastic
B) Demand curve elasticity does not change
C) Demand curve becomes more elastic
D) Demand curve becomes upward sloping
C
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Some of the most renowned examples of hyperinflation occurred in Austria, Hungary, Germany and Poland shortly after
A) the collapse of the Austro-Hungarian Empire. B) World War I. C) World War II. D) the fall of the Berlin Wall.
In the short-run macro model, if aggregate expenditure is less than GDP, output will
a. decline as firms cut production to stop the buildup of inventories b. decline as firms increase their prices to stop the buildup of inventories c. increase as firms increase production to try to stop depletion of inventories d. increase as firms cut their prices to try to stop depletion of inventories e. remain unchanged indefinitely unless government takes action