Output in the short run is determined by which of the following factors when an economy operates at full employment?
A) demand
B) supply
C) the price level
D) the labor force

Question

Quizplus · Accepted Answer

When an economy is operating at full employment, the level of output in the short run is determined by the level of demand. This is because there is no more room to increase the labor force or other inputs, as they are already fully employed. Therefore, any increase in output can only occur through an increase in demand.

Output in the Short Run Is Determined by Which of the Following