If Government Purchases Change, Which Variable Is Fixed in the Short

question 137

Multiple Choice

If government purchases change, which variable is fixed in the short run as a result of the change?

• A)Saving
• B)All of these
• C)Consumption
• D)Net exports
• E)Inflation

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Definitions:

Average Revenue

The revenue a company receives for selling one unit of a product, or the total revenue divided by the quantity of products sold.

Product Differentiation

A marketing strategy that involves distinguishing a product or service from others in the market to attract a specific target audience.

Pure Competition

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to price determination by supply and demand.

Price-taking Behavior

Describes individuals or companies that accept market prices as given because they have no power to influence those prices.