The time insufficient to make all adjustments to new economic circumstances is known as:
A) the long run.
B) the short run.
C) circumstantial.
D) periodical.

Question

Quizplus · Accepted Answer

The short run refers to a period during which at least one input is fixed and firms cannot adjust all their inputs to new economic circumstances. This contrasts with the long run, where firms can adjust all inputs and fully adapt to new economic conditions.

The Time Insufficient to Make All Adjustments to New Economic