Because Prices Change Too Slowly in the Short-Run and as a Result

question 36

Multiple Choice

Because prices change too slowly in the short-run and as a result, they do not quickly equalize the quantity demanded and quantity supplied of goods and services, the short-run response of the economy to a demand shock is through:

• A)changes in output and employment levels rather than through changes in prices.
• B)changes in prices rather than through changes in employment.
• C)changes in employment but not in output.
• D)changes in output but not in the employment.

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Definitions:

Fifteenth Amendment

An amendment to the United States Constitution that prohibits the federal and state governments from denying a citizen the right to vote based on that citizen's "race, color, or previous condition of servitude."

Global Village

Marshall McLuhan’s term describing the way that new communication technologies override barriers of space and time, joining together people all over the globe.

Marshall McLuhan

A Canadian philosopher known for coining the expressions "the medium is the message" and "global village," and for his work on the effects of mass media on culture and human perception.

English Premier League

A professional football league in England, regarded as one of the top football leagues in the world.