What is the main reason for changes in GDP in the short run?
What will be an ideal response?
The main reason for changes in GDP in the short run is changes in the level of aggregate expenditure.
Economics
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If the economy is currently in equilibrium at a level of GDP that is above potential GDP, which of the following would move the economy back to potential GDP?
A) a decrease in interest rates B) a decrease in wealth C) a decrease in the value of the dollar relative to other currencies D) an increase in business confidence
Economics
When a worker's nominal wage is indexed, the nominal wage is usually automatically adjusted based on movements in which of the following variables?
A) productivity B) the price of the firm's product C) the average wage in the country D) the average wage in the industry E) none of the above
Economics