A Factor of Production That Cannot Be Easily Changed in the Relevant

question 63

Multiple Choice

A factor of production that cannot be easily changed in the relevant time period is called a

• A)short-run factor.
• B)fixed input.
• C)variable input.
• D)production anchor.

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Definitions:

Spending Multiplier

The ratio of change in aggregate output (or income) to a change in spending that caused the change, showing how initial spending leads to increased total spending.

Autonomous Investment

Investment that does not change in response to alterations in the overall economy or income levels, such as public infrastructure investments.

Equilibrium Real GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand, adjusted for inflation.

Planned Aggregate Expenditure

The total amount households, businesses, and the government plan to spend on goods and services at different levels of national income.