One Difference Between the Short Run and the Long Run

question 6

Multiple Choice

One difference between the short run and the long run in macroeconomics is that

• A) aggregate supply defines GDP in the short run, whereas aggregate demand, given a price, defines GDP in the long run.
• B) prices that can be assumed exogenous in the long run tend to vary wildly in the short run.
• C) aggregate demand defines GDP given an exogenous price level in the short run, whereas aggregate supply defines GDP in the long run with flexible prices.
• D) people can form expectations about what will happen over the long run but are completely in the dark about the random walk uncertainties of the short run.
• E) none of the above.

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Definitions:

Prison

An institution for the confinement and rehabilitation of individuals who have been convicted of crimes.

Social Constructionism

Social constructionism is a theory in sociology and psychology that suggests knowledge, reality, and meaning are constructed through social interactions and cultural norms.

Crime

Activities that are against the law and punishable by the state or other authority.

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Challenges or issues that affect individuals, groups, or societies at large, often requiring collective action to address.