The "short run" may vary in length from industry to industry

In response to Southern restrictions on the export of cotton in 1861 and 1862,

a. Britain was forced to give financial aid to the Confederate government due to its dependence on Southern cotton. b. Britain provided a naval blockade protecting ships carrying Southern cotton. c. the price of Southern cotton soared, allowing Southern planters to earn substantial profits. d. Britain relied on alternate sources of supply to meet its cotton demand.

Ms. Jones is a professor at a university. She strongly supports the rational expectations theory. She is likely to believe that the only time active policy has an impact on aggregate output is when: a. an expansionary policy is implemented. b. a recessionary policy is implemented. c. policy changes are unannounced

d. the economy has a recessionary gap. e. the economy has an expansionary gap.