If Prices of Goods and Services Quickly Adjusted to Demand

question 20

Multiple Choice

If prices of goods and services quickly adjusted to demand shocks, then

• A)firms would find it difficult to produce at their optimal output rates.
• B)output rates would quickly adjust to changes in demand.
• C)firms would find it easier to produce at their optimal output rates.
• D)the economy would experience severe short-run fluctuation.

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Definitions:

Reaction Range

The variation in potential outcomes of a particular phenotype or behavior determined by genetic limits in response to different environmental conditions.

Intelligence

The ability to learn, understand, and apply information, solve problems, and adapt to new situations.

War

A state of armed conflict between different countries or different groups within a country.

Genetic Factors

Hereditary characteristics and traits influenced by genes passed down from parents to offspring, affecting physical and mental development.