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:

General Partnership

A business arrangement where two or more individuals share ownership, as well as the profits, liabilities, and management duties.

Hedge Funds

Hedge funds are investment funds that employ various strategies to earn active returns for their investors, often engaging in leveraged, long, short, and derivative positions.

Private Equity Funds

Investment funds that gather capital from wealthy individuals or institutions to invest in buying and reorganizing private companies.

Separation Theorem

States that a firm’s investment decisions should be separate from the investment preferences of its investors.