In Economics, the Short Run Is the Time Frame in Which

question 139

Multiple Choice

In economics, the short run is the time frame in which the quantities of _______ and the long run is the period of time in which _______.

• A) some factors of production are variable; the quantities of all factors of production are fixed
• B) all factors of production are fixed; the quantities of all factors of production can be varied
• C) all factors of production are variable but technology is fixed; technology is variable
• D) some factors of production are fixed; the quantities of all factors of production can be varied

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Definitions:

Economic Behaviorists

Researchers or economists who study the psychological, social, cognitive, and emotional factors influencing the economic decisions of individuals and institutions.

Monetarists

Economists of the view that changes in the money supply significantly affect the national output in the short term and have major impacts on the price level over extended durations.

MV = GDP

An equation representing the relationship between the money supply (MV) and gross domestic product (GDP), highlighting the velocity of money in economic activities.

PQ = GDP

An equation stating that the price level (P) times the quantity of output (Q) is equal to the Gross Domestic Product.