In the Short Run, the Supply of a Resource Will

question 22

Multiple Choice

In the short run, the supply of a resource will generally be

• A) less elastic than in the long run.
• B) more elastic than in the long run.
• C) equally elastic as the supply of the resource in the long run.
• D) inversely related to the elasticity of demand for the product that the resource helps produce.

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Definitions:

Government Purchases

Expenditures by government entities for goods and services that directly consume economic output.

Real GDP

Refers to the total economic output of a country, adjusted for price changes or inflation, measured in constant prices.

Government Purchases

These are expenditures made by government entities for goods and services that directly satisfy public needs or are used to produce other goods and services for public consumption.

Per Capita GDP

The measure of a country's economic output per person, calculated by dividing the Gross Domestic Product by the total population.