The Short-Run Macro Model

question 9

Multiple Choice

The short-run macro model

• A) is an attempt to explain why the economy tends to perform better in the short run than in the long run
• B) was developed during the Great Depression to explain the economy's continuing poor performance
• C) lost its popularity during the 1950s
• D) was developed during the early 19th century
• E) explains the forces that work to drive the economy to full employment

---

Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country over a specific time period.

Employment Opportunities

Available job positions that individuals can apply for within the labor market.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.