Which of the Following Characteristics Define the Short Run in Macroeconomics

question 64

Multiple Choice

Which of the following characteristics define the short run in macroeconomics?

• A)Factor prices are exogenous, technology and factor prices are endogenous.
• B)Factor prices adjust to output gaps, and technology and factor supplies are constant.
• C)Factor prices are exogenous, and technology and factor supplies are changing.
• D)Factor prices are exogenous, and technology and factor supplies are constant.
• E)Factor prices adjust to output gaps, and technology and factor prices are changing.

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Definitions:

Production Function

A mathematical expression that describes the relationship between input factors of production (like labor and capital) and the output of goods or services.

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or economy.

Cost

Cost pertains to the value of economic resources used in the production of goods or services, often reflected in terms of money expended.