The Term Capital, as Used in Macroeconomics, Refers to

question 135

Multiple Choice

The term capital, as used in macroeconomics, refers to

• A) the sum of investment and government purchases of goods.
• B) the plant, equipment, buildings, and inventories of raw materials and semi- finished goods.
• C) investment.
• D) financial wealth.

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Definitions:

Short Run

A period in which at least one input is fixed, and only some of the production inputs can be varied.

Aggregate Demand

Cumulative interest in goods and services within an economic structure, evaluated at a particular comprehensive price level over a specific duration.

Short Run

A timeframe in which a company has at least one input that remains constant and is unable to be altered.

Short-Run Equilibrium

A state in economics where demand equals supply, resulting in market stability over a temporary period.