The duration of the "short-run"
A) is one year.
B) is the same for all goods.
C) depends on the relative short-run elasticity of demand and supply for the good.
D) depends on how long it takes consumers or firms to adjust for a particular good.
D
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Although ________ initially proposes and ultimately approves the budget, the discussion and amendment process rests with ________
A) the U.S. Treasury; Congress B) Congress; the President C) Congress; the Federal Reserve D) the Senate; the President E) the President; Congress
The process of converting current dollar values into real terms is called ________, while the process of adjusting nominal quantities to maintain their purchasing power is called ________.
A. deflating; indexing B. deflation; inflation C. inflation; hyperinflation D. indexing; deflating
The fraction of deposits a bank must hold in the form of reserves is called the:
A. reserve ratio. B. currency to reserve ratio. C. excess reserve ratio. D. required reserve ratio.
If an economy's MPC is 0.95 and the MPM is 0.15, then an increase in government spending of $1,000 will increase income by
A. $1,000. B. $4,500. C. $5,000. D. $8,000.