According to the New Classical Economists, Long-Run Equilibrium Can Be

question 22

True/False

According to the new classical economists, long-run equilibrium can be attained in a relatively short time period, such as a year or two.

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Definitions:

Flexible Budget

A budget engineered to tweak itself in alignment with volume or activity level shifts.

Employee Salaries

Payments made to employees for their services over a fixed period, typically regularly scheduled and in fixed amounts.

Activity Variance

The difference between budgeted activity levels and actual activity levels.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.