Which of the Following Is True in the Short Run

question 138

Multiple Choice

Which of the following is true in the short run but not in the long run?

• A)Actual output is equal to potential output.
• B)Actual output can exceed potential output.
• C)Structural unemployment can exist.
• D)Frictional unemployment can exist.
• E)Real and nominal GDP can differ.

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Definitions:

Marginal Benefit

The extra pleasure or benefit gained by a consumer from consuming an additional unit of a product or service.

Annual Immigration Quota

A legal limit on the number of people allowed to immigrate to a country within a given year.

Tourism Visas

Official documents or endorsements within passports that allow travelers to enter, stay, or travel within a country for tourism purposes.

Refugee Program

Formal initiatives designed to support individuals who have been forced to flee their home countries due to persecution, conflict, violence, or human rights violations.