In contrast to the long run,in the short run
A) changes in wages may lag behind changes in employment
B) the economy produces at full capacity
C) GDP follows a steady trend without fluctuations
D) the aggregate supply curve is vertical
E) the quantity of money has no effect on output

Question

Quizplus · Accepted Answer

In the short run, changes in wages may lag behind changes in employment as firms may be hesitant to adjust wages immediately. This is because changes in employment can be temporary and firms may not want to make permanent adjustments to wages based on temporary changes in demand for their products or services.

In Contrast to the Long Run,in the Short Run