The Economy Enters the Long-Run Once

question 144

Multiple Choice

The economy enters the long-run once

• A)nominal wages become equal to real wages.
• B)real wages become equal to nominal wages.
• C)sufficient time has elapsed for wage contracts to expire and nominal wages to adjust to output-price changes.
• D)sufficient time has elapsed for real GDP to increase and unemployment to decrease as a consequence

---

Definitions:

Short-Term

Short-term usually describes a limited period or duration, often referring to memory, where it indicates the capacity to hold small amounts of information in an active, readily available state for a brief period of time.

Long-Term

Relating to, covering, or extending over a long period of time.

Value-Added

The enhancement a company gives its product or service before offering the product to customers, increasing its value.

Standardized Achievement Test Scores

Quantitative measurements obtained from exams that assess knowledge in specific areas, designed to provide a common metric for comparing the academic abilities of diverse individuals or groups.