A farmer increases the amount of fertilizer used on his corn crop.
1.4 An Alcoa aluminum plant adds a third shift of workers.
ANSWER
1.1) Long-Run. (0.5) This is a capital investment, which takes time to become productive. (0.5)
1.2) Short-Run. (0.5) The new laborers can work immediately. (0.5)
1.3) Short-Run. (0.5) Although this takes time via the growing process, this is still a short-run
adjustment. It influences the growth of current crops immediately. (0.5)
1.4) Short-Run. (0.5) The new laborers can work immediately. (0.5)