Asked by Kayla Cohen on Jun 20, 2024
Verified
The short run is a period of time during which:
A) there is an expansionary gap that cannot be corrected using the passive approach.
B) actual output equals potential output.
C) there is a recessionary gap that cannot be corrected through discretionary policy.
D) resource buyers and sellers cannot adjust fully to changes in the price level.
E) resource buyers and sellers can adjust fully to changes in the price level.
Short Run
A period in economics during which at least one factor of production is considered fixed, focusing on immediate effects of changes in demand or supply.
Expansionary Gap
The amount by which actual output in the short run exceeds the economy’s potential output
Recessionary Gap
The amount by which actual output in the short run falls short of the economy’s potential output.
- Review the elements determining the short-term aggregate supply curve.
Verified Answer
Learning Objectives
- Review the elements determining the short-term aggregate supply curve.
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