Consider the short run and the long run time frames used in macroeconomics. The
ID: 1210399 • Letter: C
Question
Consider the short run and the long run time frames used in macroeconomics. The definition of the short run is Select one: the time period when the labor force participation rate is fixed. The time period when supply of money is fixed The time period when inflation is positive The time period before the economy has fully adjusted to an unexpected change in aggregate demand According to most economists, including those at the Federal Reserve, what is a desirable rate of inflation? Select one Precisely 5% Something mud and predictable. like 2% Zero % Something negative which is donation, to counter all the past years of inflation According to the AD/AS model recessions are causes by Select one. negative aggregate demand shocks negative real shocks positive real shocksExplanation / Answer
Answer 1:
Option A. Labor force is considered fixed in the short run.
Answer 2:
Option B.
Answer 3:
Option D.