What Is the Key Difference Between the Short-Run and Long-Run

question 5

Multiple Choice

What is the key difference between the short-run and long-run in terms of elasticity of supply?

• A)Fixed productive capacity
• B)Labor changes
• C)No changes can be made to capital or labor
• D)No difference

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Definitions:

Unemployment Rate

The portion of the labor sector that remains unemployed and is actively job hunting.

Department Of Labor

A governmental department responsible for enforcing labor laws and ensuring safe and fair working conditions for employees.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to assess price changes associated with the cost of living.

GDP Deflator

A price index used to measure price changes in the items that go into GDP.