Short-run model and long-run model.

Question

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Answer 1

Question

Chapter 9, Problem 1RQ

To determine

Short-run model and long-run model.

Expert Solution & Answer

Explanation of Solution

The short run refers to a time period, which does not allow a change in capital to adjust to the market situation. The short-run model explains the changes in output due to changes in the variables such as labor and raw materials and the present inflation rate.

The long run refers to a time period, which changes the production variable to adjust to the market situation. The long-run model represents the growth rate of output and the production level. The model also explains the long-run inflation rate. The long-run output level should be known for understanding the short-run fluctuations and the size of production.

Economics Concept Introduction

Short run: The short run refers to a time period, which does not allow a change in capital to adjust to the market situation.

Long run: The long run refers to a time period, which changes the production variable to adjust to the market situation.

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Answer 2

Question

Chapter 9, Problem 1RQ

To determine

Short-run model and long-run model.

Expert Solution & Answer

Explanation of Solution

The short run refers to a time period, which does not allow a change in capital to adjust to the market situation. The short-run model explains the changes in output due to changes in the variables such as labor and raw materials and the present inflation rate.

The long run refers to a time period, which changes the production variable to adjust to the market situation. The long-run model represents the growth rate of output and the production level. The model also explains the long-run inflation rate. The long-run output level should be known for understanding the short-run fluctuations and the size of production.

Economics Concept Introduction

Short run: The short run refers to a time period, which does not allow a change in capital to adjust to the market situation.

Long run: The long run refers to a time period, which changes the production variable to adjust to the market situation.

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Answer 3

Question

Chapter 9, Problem 1RQ

To determine

Short-run model and long-run model.

Expert Solution & Answer

Explanation of Solution

The short run refers to a time period, which does not allow a change in capital to adjust to the market situation. The short-run model explains the changes in output due to changes in the variables such as labor and raw materials and the present inflation rate.

The long run refers to a time period, which changes the production variable to adjust to the market situation. The long-run model represents the growth rate of output and the production level. The model also explains the long-run inflation rate. The long-run output level should be known for understanding the short-run fluctuations and the size of production.

Economics Concept Introduction

Short run: The short run refers to a time period, which does not allow a change in capital to adjust to the market situation.

Long run: The long run refers to a time period, which changes the production variable to adjust to the market situation.

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Answer 4

Question

Chapter 9, Problem 1RQ

To determine

Short-run model and long-run model.

Expert Solution & Answer

Explanation of Solution

The short run refers to a time period, which does not allow a change in capital to adjust to the market situation. The short-run model explains the changes in output due to changes in the variables such as labor and raw materials and the present inflation rate.

The long run refers to a time period, which changes the production variable to adjust to the market situation. The long-run model represents the growth rate of output and the production level. The model also explains the long-run inflation rate. The long-run output level should be known for understanding the short-run fluctuations and the size of production.

Economics Concept Introduction

Short run: The short run refers to a time period, which does not allow a change in capital to adjust to the market situation.

Long run: The long run refers to a time period, which changes the production variable to adjust to the market situation.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1RQ

To determine

Short-run model and long-run model.

Expert Solution & Answer

Explanation of Solution

The short run refers to a time period, which does not allow a change in capital to adjust to the market situation. The short-run model explains the changes in output due to changes in the variables such as labor and raw materials and the present inflation rate.

The long run refers to a time period, which changes the production variable to adjust to the market situation. The long-run model represents the growth rate of output and the production level. The model also explains the long-run inflation rate. The long-run output level should be known for understanding the short-run fluctuations and the size of production.

Economics Concept Introduction

Short run: The short run refers to a time period, which does not allow a change in capital to adjust to the market situation.

Long run: The long run refers to a time period, which changes the production variable to adjust to the market situation.

Answer 6

Chapter 9, Problem 1RQ

To determine

Short-run model and long-run model.

Expert Solution & Answer

Explanation of Solution

The short run refers to a time period, which does not allow a change in capital to adjust to the market situation. The short-run model explains the changes in output due to changes in the variables such as labor and raw materials and the present inflation rate.

The long run refers to a time period, which changes the production variable to adjust to the market situation. The long-run model represents the growth rate of output and the production level. The model also explains the long-run inflation rate. The long-run output level should be known for understanding the short-run fluctuations and the size of production.

Economics Concept Introduction

Short run: The short run refers to a time period, which does not allow a change in capital to adjust to the market situation.

Long run: The long run refers to a time period, which changes the production variable to adjust to the market situation.

Answer 7

Chapter 9, Problem 1RQ

To determine

Short-run model and long-run model.

Answer 8

Expert Solution & Answer

Explanation of Solution

The short run refers to a time period, which does not allow a change in capital to adjust to the market situation. The short-run model explains the changes in output due to changes in the variables such as labor and raw materials and the present inflation rate.

The long run refers to a time period, which changes the production variable to adjust to the market situation. The long-run model represents the growth rate of output and the production level. The model also explains the long-run inflation rate. The long-run output level should be known for understanding the short-run fluctuations and the size of production.