One Major Difference Between the Short-Run and Long-Run Macroeconomic Analysis

question 24

Multiple Choice

One major difference between the short-run and long-run macroeconomic analysis is that:

• A)in the short-run prices are fully flexible while in long-run they are not.
• B)in the short-run prices are sticky while in long-run they are fully flexible.
• C)in the short-run stickiness of prices would guarantee the long-run price inflexibility.
• D)the price stickiness in the long-run guarantees the flexibility of prices in the short-run.

---

Definitions:

Special Circumstances Doctrine

A legal principle allowing flexibility in sentencing or decision-making due to unique case factors.

Garnishee

A legal process that allows a creditor to seize the assets of a debtor held by a third party.

Annual Rate

The annual rate is the interest percentage that is charged or earned over the course of a year, often used in the contexts of loans, investments, and savings.

Breach of Contract

The inability to meet a condition of any contract, written or spoken, in the absence of a legal justification.