The Duration of the "Short-Run

question 99

Multiple Choice

The duration of the "short-run"

• A) is one year.
• B) is the same for all goods.
• C) depends on the relative short-run elasticity of demand and supply for the good.
• D) depends on how long it takes consumers or firms to adjust for a particular good.

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Definitions:

Induced Consumption

Consumption that varies directly with income, indicating how consumer spending increases as income rises.

Disposable Income

The wealth households have at their disposal for spending and saving post-income tax evaluations.

Disposable Income

Funds designated for households' spending and saving ventures post-income tax calculation.

Disposable Income

Economic resources that households can utilize for spending and saving actions after income tax deductions.