The Difference in the Influence of a Multiplier Between the Short

question 94

Multiple Choice

The difference in the influence of a multiplier between the short run and the long run is that

• A)the multiplier effect is larger in the long run.
• B)the multiplier effect is zero in the long run.
• C)the multiplier effect is zero in the short run.
• D)there is no multiplier effect in the short run.
• E)the multiplier effect depends on potential GDP in the long run.

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Definitions:

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs or regulatory requirements.

Monopoly

a market structure characterized by a single seller who has exclusive control over a product or service, often leading to higher prices and less competition.

Long Run

In economics, a period in which all inputs or factors of production can be varied, allowing companies to adjust all aspects of their operations.

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs, representing the additional gain over the opportunity cost.