In Macroeconomics, the Long Run Is

question 153

Multiple Choice

In macroeconomics, the long run is

• A) a period long enough that participants in the economy will have enough time to gain all relevant information but not enough time to act correctly on that information.
• B) the same period accountants use to measure long-term assets and liabilities.
• C) a period long enough that participants in the economy will have enough time to gain all relevant information and enough time to act correctly on that information.
• D) a period long enough that participants in the economy will have enough time to act correctly on all relevant information but not enough time to collect all of it.

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Definitions:

Durable Goods

Goods that are designed to last and be used over a long period, such as vehicles, appliances, and furniture.

Nondurable Goods

Goods that are consumed or are only usable for a short period of time before they are depleted or become useless.

Consumer Spending

The total amount of money spent by individuals and households on goods and services for personal use, a key driver of economic activity.

Disposable Income

Monetary assets available for households to invest in spending and saving after tax obligations.