Which of the following occurs as macroeconomic output expands in the short run?
A) The nominal cost of labour decreases.
B) The demand for nonlabour resources decreases.
C) Equipment wears out faster.
D) The nominal cost per unit of output falls.

Question

Which of the following occurs as macroeconomic output expands in the short run?  
A) The nominal cost of labour decreases. 
B) The demand for nonlabour resources decreases. 
C) Equipment wears out faster. 
D) The nominal cost per unit of output falls.

Quizplus · Accepted Answer

C) Equipment wears out faster because as macroeconomic output expands, the use of equipment and machinery typically increases to meet higher production demands. This increased usage can lead to faster wear and tear on the equipment.

Which of the Following Occurs as Macroeconomic Output Expands in the Short