Output supply is more responsive to price in the short run than in the long run. ?
Answer the following statement true (T) or false (F)
False
Rationale: Output supply is more responsive to price in the long run than in the short run, since the producer will hire more, causing an increase in output in the long run, beyond that of the short run.
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Any capital resource that lacks clear title ownership is
A) the result of foreign direct investment. B) free capital. C) dead capital. D) capital destruction.
The new Keynesian sticky-price theory indicates that an increase in aggregate demand generates
A) a speedy rise in real GDP but a sluggish increase in the price level. B) a speedy rise in the price level but a sluggish increase in real GDP. C) sluggish increases in both real GDP and the price level. D) rapid increases in both real GDP and the price level.