In the Short Run

question 16

Multiple Choice

In the short run

• A) the level of GDP is determined by the demand and supply for labor, the supply of capital, and technological progress.
• B) increases in the money supply increase GDP.
• C) prices are flexible.
• D) the economy always operates at full employment.

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Definitions:

Disagreement Value

The worth or specific outcome that parties in a negotiation anticipate they could receive if they fail to come to an agreement and decide to pursue other options.

Opportunity Costs

The cost of what is foregone by choosing one alternative over another, representing the benefits that could have been received from the next best alternative.

Bargaining Position

The relative power or leverage that a party has during negotiations to influence the terms in their favor.

Supplier Merges

The act of two or more suppliers combining their operations, often to increase efficiency or market power.