The Short-Run Model Is Built on Which of the Following

question 1

Multiple Choice

The short-run model is built on which of the following?
i. The economy is constantly being hit by so-called shocks.
ii. Economic policy has no impact on output.
iii. There is trade-off between output and inflation.

• A) i only
• B) i and iii
• C) ii and iii
• D) ii only
• E) i, ii, and iii

---

Definitions:

Adding Value

The process of enhancing a product or service to make it more attractive to customers, thereby increasing its worth.

Venture Capital Firm

A company that invests in startups and early-stage companies with high growth potential in exchange for equity.

Entrepreneur

An individual who organizes, operates, and assumes the risk for a venture, innovating and transforming ideas into economically viable entities.

Tax Exposure

The degree to which an individual or organization is subject to taxes or the risk of tax-related liabilities.