In the context of aggregate supply, the short run is defined as the period during which
A) some prices are set by contracts and cannot be adjusted.
B) prices can change, but neither aggregate supply nor aggregate demand can shift.
C) individuals have sufficient time to modify their behavior in response to price changes.
D) quantity changes cannot occur in response to changes in relative prices.

Question

Quizplus · Accepted Answer

In the short run, some prices are set by contracts and cannot be adjusted, leading to sticky prices and a temporary inability for the economy to adjust to changes in supply and demand.

In the Context of Aggregate Supply, the Short Run Is