A Result of the Le Châtelier Brown Principle Is

question 4

Multiple Choice

A result of the Le Châtelier Brown principle is

• A) an increase in the price of capital has a larger effect in the short run than the long run.
• B) an increase in the price of capital has a larger effect in the long run than the short run.
• C) an increase in the price of labor has a larger effect in the short run than the long run.
• D) an increase in the price of labor has a larger effect in the long run than the short run.
• E) an increase in the price of labor has a large effect in the short run but no effect in the long run.

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Definitions:

Federal Budget Deficit

The deficit occurring when government spending surpasses income within a specific budget year.

Unemployment Rates

The measure of the unemployed in the labor force who are seeking job opportunities.

Economic Downturn

A period of poor economic performance across a country or region, often characterized by a decline in GDP, employment, and trade.

Japanese Reindustrialization

The period or process of Japan revitalizing its industrial sector, focusing on high technology, efficiency, and export-oriented production.