Which Period Describes When Companies Can Alter Their Output but Not

question 265

Multiple Choice

Which period describes when companies can alter their output but not their plant capacity?

• A) market period
• B) short run
• C) long run
• D) medium run

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, reflecting the value of all goods and services produced by an economy in a given year in real terms.

GDP Deflator

An economic measure that accounts for inflation by converting output measured at current prices into constant-dollar GDP.

Net Domestic Product

A measure of a nation's total economic output, adjusted for depreciation; it is the gross domestic product (GDP) minus the depreciation on a country’s capital goods.

National Income

The total amount of money earned within a country from the production of goods and services over a specified period, usually a year.