Multiple Choice
Changes in factor supplies have little influence on short- run GDP growth but are important to long- run growth in output because
A) additions to the labour force and capital stock happen only gradually over time.
B) land cannot be changed in the short run.
C) it is almost impossible to change the capital stock in the short run.
D) wages increase rapidly in the short run, thus dampening the growth of employment.
E) only aggregate demand is observed in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
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