When prices in the economy have not fully adjusted, we say that: A. Group of answer...

When prices in the economy have not fully adjusted, we say that:

A. Group of answer choices

B. it is a period of time less than one year.

C. we are in the short run.

D. we are in the long run.

E. the market is not in equilibrium.

F. it is a period of time less than five years.

Expert Solution

The answer is option c- We are in short run

We will equate it to the maximum employment production until we have a short-run equilibrium output to find out where we are in the market cycle. If the actual real GDP is smaller than the full production of workers, the economy is in recession. An economy is undergoing a boom if the actual real GDP is greater than full employment production. If the present output is equal to the output of full employment, so we conclude the economy is in equilibrium in the long term. It's not too low, or too high, for production. .

Rahul Sunny answered 2 years ago

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