The Macroeconomic Long Run Is Best Defined as

question 422

Multiple Choice

The macroeconomic long run is best defined as

• A) the time period sufficiently long so that real GDP has adjusted to equal potential GDP.
• B) a time period of less than 1 year.
• C) the time period sufficiently long so that real GDP has adjusted to exceed potential GDP.
• D) a time period of more than 1 year.

---

Definitions:

Output

The quantity of goods or services produced by a firm or industry within a certain period of time.

Inputs

Resources used in the production process to create goods and services, including labor, capital, materials, and energy.

Output

The quantity of goods or services produced by a company, industry, or economy within a specified time period.

Constant Returns to Scale

A situation in production where increasing all inputs by a certain proportion results in output increasing by that same proportion.