Economists Believe That Most Short-Run Fluctuations Are the Result Of

question 56

Multiple Choice

Economists believe that most short-run fluctuations are the result of:

• A)supply shocks.
• B)demand shocks.
• C)unexpected changes in the availability of imported resources.
• D)negative supply shocks.

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Definitions:

Operate

The act of controlling or managing the functions of something, like machinery or a business.

Economic Profit

The distinction between the income generated from selling a product and the opportunity cost of the resources utilized.

Price

Price is the amount of money required to purchase a good or service, often determined by the balance of supply and demand in a market.

Economic Profit

The excess of total revenue over total costs, including both explicit and opportunity costs.