Assume That from 2007 to 2009 the U

question 125

Multiple Choice

Assume that from 2007 to 2009 the U.S.economy experiences inflation.Also,assume that GDP remains constant from 2007 to 2009.Therefore,

• A)real GDP rises.
• B)real GDP falls.
• C)there is no change in real GDP.
• D)no conclusion can be reached as to whether real GDP rises,falls,or remains the same.

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Definitions:

Short Run

A time period in which at least one factor of production is fixed, limiting the ability of a business to adjust fully to market changes.

Skilled Labor

Workers who possess specialized skills, training, and education that are required to perform complex tasks.

Unskilled Labor

Refers to workers who lack specialized training or qualifications, often performing manual or routine tasks.

Marginal Product

The additional output resulting from a one-unit increase in the use of a variable input, while holding all other inputs constant.