When Accounting for Changes in Real GDP, Changes in the Factor-

Multiple Choice

When accounting for changes in real GDP, changes in the factor- utilization rate are most important in the

A) long run because firms adapt to wage changes and hire more workers.
B) short run because firms immediately build new plants to satisfy changes in demand.
C) long run because firms need time to hire more workers or acquire additional capital.
D) short run because firms need time to adjust their price lists.
E) short run because firms react to changes in demand by increasing production from existing facilities.