Which of the Following Would Not Be a Short-Run Operating

question 23

Multiple Choice

Which of the following would not be a short-run operating activity or decision?

• A) Buying raw materials with cash or bank loan.
• B) Selling product on credit.
• C) Increasing inventory safety stock.
• D) Investing a new process machine.

Recognize various types of unemployment (frictional, structural, cyclical).

Compute changes in the unemployment rate and interpret its implications.

Identify periods of significant economic changes post-1945.

Distinguish between demand-pull and cost-push inflation.

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Definitions:

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time, typically measured as the percent rate of increase in real GDP.

Full Employment

An economic situation in which all available labor resources are being used in the most efficient way possible, often characterized by the absence of cyclical unemployment.

Technology Level

A measure of the degree of sophistication and advancement of a society's tools, techniques, and methods of production.

Instability

The condition of being prone to change or fluctuation, often in a way that is unpredictable or potentially harmful.