'An Increase in the Price of Petrol Will Increase the Demand

question 30

True/False

'An increase in the price of petrol will increase the demand for hybrid vehicles.' This statement is an example of a positive economic statement.

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Definitions:

Short Run

A period in economics during which some factors of production are fixed, limiting the immediate ability of businesses to expand or change production levels.

Long Run

Refers to a period in which all factors of production and costs are variable, allowing for the full adjustment to changes.

Monetary Growth

The increase in the quantity of money in an economy over time, which can influence inflation and economic activity.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate reflection of an economy's size and growth rate.