In the Short Run,________

question 43

Multiple Choice

In the short run,________.

• A)cost push shocks can cause firms to raise prices
• B)workers pushing for higher wages may lead to increases in inflation
• C)the aggregate supply curve may shift to the left with increases in expected inflation
• D)all of the above
• E)none of the above

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Definitions:

Pure Rent

The return to any factor of production that is in fixed supply.

Fixed Supply

A condition where the quantity of a particular good, service, or resource does not change, regardless of the price.

MRP

Marginal Revenue Product, which refers to the additional revenue generated from employing one more unit of a resource.

Perfectly Elastic

A situation in which the demand or supply for a good or service is infinitely responsive to changes in price.