What Is the Difference Between the Short Run and the Long

question 111

Essay

What is the difference between the short run and the long run in macroeconomics? Why is this distinction critical in the analysis of aggregate demand and supply?

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Definitions:

Confidence Interval

A range of values derived from sample statistics that is likely to cover the true parameter of the population with a certain level of confidence.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean.

T-Distribution

A probability distribution used in statistics for estimating population parameters when the sample size is small and the population variance is unknown.

Confidence Intervals

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, expressed with a certain level of confidence.