In Macroeconomics,the Long Run Refers To

question 33

Multiple Choice

In macroeconomics,the long run refers to:

• A)how long it takes for prices of inputs to fully adjust to changes in economic conditions.
• B)the time period when sticky wages are in place.
• C)how long it takes for output decisions to adjust to changes in economic conditions.
• D)None of these is true.

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Definitions:

Consumption and Investment

Elements of economic activity where consumption represents spending by households on goods and services, while investment refers to spending on capital goods that will be used for future production.

Macroeconomic Equilibrium

A state in which aggregate supply equals aggregate demand in an economy, leading to a stable price level and full employment.

Aggregate Production

The total output of goods and services produced by an economy over a specified period.

Aggregate Production

The total output of goods and services produced by an economy over a given period.