Which of the Following Is an Example of a Long-Run

question 300

Multiple Choice

Which of the following is an example of a long-run adjustment?

• A) Your university offers Saturday morning classes next fall.
• B) Ford Motor Company lays off 2,000 assembly line workers.
• C) A soybean farmer turns on the irrigation system after a month long dry spell.
• D) Wal-Mart builds another Supercenter.

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Definitions:

Expansionary Monetary Policy

A policy by central banks aimed at increasing the money supply to stimulate economic growth, typically involving lower interest rates and increased lending.

Stock Market

A public marketplace for buying and selling shares of publicly listed companies.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Government Spending

Expenditure by the government in any given period, typically on public services, defense, infrastructure, and social welfare programs.