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In the long-run, aggregate production is determined by the side of the economy while in the short run it is determined by the side.

In the long-run, aggregate production is determined by the side of the economy while in the short run it is determined by the side.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Question:** Investment is a _______ function of the cost of borrowing as represented by _________. **Options:** - (Selected Option) Negative; nominal interest rate - Negative; real interest rate - Positive; inflation rate - Positive; marginal product of capital
Transcribed Image Text:**Question:** Investment is a _______ function of the cost of borrowing as represented by _________. **Options:** - (Selected Option) Negative; nominal interest rate - Negative; real interest rate - Positive; inflation rate - Positive; marginal product of capital
### Understanding Aggregate Production in Economics In the study of economics, it's important to understand how aggregate production is influenced by different factors over varying time periods. **Question:** In the long-run, aggregate production is determined by the ______ side of the economy while in the short run it is determined by the ________ side. **Answer Choices:** - ○ demand; supply - ○ real; nominal - ○ nominal; real - ○ supply; demand In this context, the correct understanding is that aggregate production is largely influenced by the supply side in the long-run and by the demand side in the short run. This reflects how different economic forces shape production over time, emphasizing the significance of supply factors in sustainable economic growth and the impact of demand in shorter economic cycles.
Transcribed Image Text:### Understanding Aggregate Production in Economics In the study of economics, it's important to understand how aggregate production is influenced by different factors over varying time periods. **Question:** In the long-run, aggregate production is determined by the ______ side of the economy while in the short run it is determined by the ________ side. **Answer Choices:** - ○ demand; supply - ○ real; nominal - ○ nominal; real - ○ supply; demand In this context, the correct understanding is that aggregate production is largely influenced by the supply side in the long-run and by the demand side in the short run. This reflects how different economic forces shape production over time, emphasizing the significance of supply factors in sustainable economic growth and the impact of demand in shorter economic cycles.
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