In Economics, What Is the Difference Between the Short Run

question 175

Essay

In economics, what is the difference between the short run and the long run?

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Definitions:

National Saving

The total savings of a nation, calculated as the sum of private and public saving, representing the part of national income not consumed or spent by the government.

Foreign Assets

Financial assets or investments that are located in a country other than the investor's home country.

Open Economy

An economy that engages in international exchange of goods, services, and capital.

National Saving

The total amount saved by the government, households, and the business sector in an economy.