In the short run, output is determined almost exclusively by
A) the level of the capital stock.
B) the level of current investment.
C) the level of government spending.
D) recent changes in technology.
E) the sum total of aggregate demand.

Question

Quizplus · Accepted Answer

In the short run, output is primarily determined by the sum total of aggregate demand, which includes consumption, investment, government spending, and net exports. This is because, in the short run, factors such as the capital stock, technology, and investment levels are relatively fixed and cannot be adjusted quickly to meet changes in demand.

In the Short Run, Output Is Determined Almost Exclusively by