In the Short Run

question 96

Multiple Choice

In the short run,

• A)at least one of the firm's inputs is fixed
• B)customer tastes and preferences are fixed
• C)the firm may vary all inputs
• D)sunk costs are variable
• E)government intervention is inevitable

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Definitions:

Great Recession

The Great Recession was a severe global economic downturn that took place from late 2007 through mid-2009, marked by significant declines in asset prices and failures of major financial institutions.

Unemployment

The situation in which individuals who are capable of working and actively seeking work are unable to find employment.

Budget Deficits

Occurs when a government spends more money than it receives in revenue over a specified period, leading to an accumulation of debt.

National Debt

The total amount of money that a country's government has borrowed, typically as a result of budget deficits over years.