The Short Run Is a Period of Time During Which

question 14

Multiple Choice

The short run is a period of time during which:

• A)there is an expansionary gap that cannot be corrected using the passive approach.
• B)actual output equals potential output.
• C)there is a recessionary gap that cannot be corrected through discretionary policy.
• D)resource buyers and sellers cannot adjust fully to changes in the price level.
• E)resource buyers and sellers can adjust fully to changes in the price level.

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Definitions:

Ambiguous

Lacking clear definition or boundaries, open to more than one interpretation or understanding.

Plain Language

Writing designed to ensure the reader understands as quickly, easily, and completely as possible.

Bilateral Contract

An agreement between two parties where each promises to perform an act in exchange for the other party's act.

Unilateral Contract

A contract in which only one party makes a promise or obligation to perform a specific action in exchange for a performance rather than a promise from the other party.