Changes in Factor- Utilization Rates Are Considered Important for Explaining

question 35

Multiple Choice

Changes in factor- utilization rates are considered important for explaining short- run changes in real GDP because

• A)additions to the labour force occur more frequently than changes in the utilization rate .
• B)changes to the capital stock are almost impossible to make in the short run.
• C)the employment ratio of labour and the amount of excess capacity respond quickly to changes in aggregate demand or supply.
• D)land and capital can change only in the short run.
• E)wages increase and decrease rapidly in the short run, dampening the effect of factor utilization.

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