A Difference Between the Economic Long Run and the Short

question 116

Multiple Choice

A difference between the economic long run and the short run is that:

• A) the classical dichotomy holds in the short run but not in the long run.
• B) monetary and fiscal policy affect output only in the long run.
• C) demand can affect output and employment in the short run, whereas supply is the ruling force in the long run.
• D) prices and wages are sticky in the long run only.

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Definitions:

Sleep Method

A method used to pause the execution of a program for a specified period of time.

Formal Parameter

A variable specified in the method declaration that accepts the value passed to the method during its invocation.

Milliseconds

A unit of time equal to one thousandth of a second, commonly used in computing and time measurements.

JavaBeans

A Java-based software component model that allows for encapsulation of many objects into a single object (a bean), following specific conventions.