The Short Run Refers to a Time Period

question 119

Multiple Choice

The short run refers to a time period

• A)of one year or less.
• B)in which all factors of production are variable.
• C)in which all factors of production are fixed.
• D)in which some factors of production are variable,but at least one factor of production is fixed.
• E)in which all factors of production are variable,but the technology is fixed.

---

Definitions:

Price/Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, indicating the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company’s earnings.

Interest Rates

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.