When economists speak of the short run, they are referring to _____
a. a specific period of time, usually less than one year
b. a specific period of time, more than one year, but less than two years
c. a specific period of time just long enough that the quantities of all resources can be varied
d. a period of time short enough that the quantities of at least one of the resources cannot be varied
e. a period of time short enough that none of the quantities of the resources can be varied
d
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Refer to Figure 9.1. Assume the economy is initially at point A. The eventual change from a shock that increases investment expenditure is best represented by which long-run equilibrium combination of price level and real GDP?
A) P2; Y2 B) P3; Y1 C) P1; Y2 D) P2; Y1
Refer to Scenario 14.4. Suppose that the price of the product rises to $5, the number of workers hired
A) will decrease. B) will increase. C) will not change. D) cannot be determined without knowing the wage rate.