The short run refers to a period:
A) of several days.
B) during which prices are sticky and unemployment may occur.
C) during which capital and labor are fully employed.
D) during which there are no fluctuations.

Question

Quizplus · Accepted Answer

The short run is a period in which prices are sticky, meaning they do not adjust instantaneously to changes in supply and demand. This can lead to unemployment as firms may not be able to adjust output in the short run to match changes in demand, leading to a mismatch between the demand for goods and the supply of labor.

The Short Run Refers to a Period