The Full-Employment Rate of Output Can

question 64

Multiple Choice

The full-employment rate of output can

• A) be surpassed in the long run only if input prices are flexible.
• B) not be surpassed in either the short run or the long run.
• C) be surpassed only when firms are not yet producing at full capacity.
• D) be surpassed only in the short run.

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Definitions:

Bus Service

A public or private system offering regular travel on established routes by buses for the transportation of individuals.

Bus Fares

The charges levied for traveling on a bus, typically based on the distance or zones traveled.

Revenues Dropped

A situation in which the total income generated by a business from its activities decreases compared to a previous period.

Price Elasticity of Demand

A study of how price developments influence the demand proportions for a commodity.