Apr 21 2012


Published by at 8:21 pm under

(In microeconomics): The period of time over which the amount of land and capital employed in the production of a good is fixed in quantity. “The fixed-plant period”. Labor and raw materials are the only variable resources in the short run. (In macroeconomics): The period of time over which wages and prices are relatively inflexible. A fall in aggregate demand will lead to unemployment and recession in the short-run. Due to the inability of the nation’s producers to reduce wages paid to worker, they must lay workers off to reduce costs as demand falls.

CreativeMinds WordPress Plugin CM Tooltip Glossary

Comments Off

Comments are closed at this time.