In the Context of Aggregate Supply, the Short Run Is

question 81

Multiple Choice

In the context of aggregate supply, the short run is defined as the period during which

• A) some prices are set by contracts and cannot be adjusted.
• B) prices can change, but neither aggregate supply nor aggregate demand can shift.
• C) individuals have sufficient time to modify their behavior in response to price changes.
• D) quantity changes cannot occur in response to changes in relative prices.

---

Definitions:

Budgeting

Crafting a blueprint for your financial expenditure, highlighting anticipated monetary targets and the means to accomplish them.

Activity Variance

The difference between planned activity levels and actual activity levels, used in budgeting and variance analysis.

Employee Salaries

Fixed payments made regularly to employees for their work, regardless of hours worked.

Budgeting

The process of creating financial plans for a set period, including estimating revenues, expenses, and capital needs.