The Long Run Can Be Distinguished from the Short Run

question 31

Multiple Choice

The long run can be distinguished from the short run because in the long run

• A) an equilibrium is reached between aggregate supply and aggregate demand
• B) resources are no longer scarce
• C) firms produce at capacity
• D) the inflation rate is zero
• E) technological advances come to an end

---

Definitions:

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounded at the end of each period.

Compounded Semi-annually

Interest calculation method where interest is added to the principal twice a year, increasing the amount on which future interest is calculated.

Bequest

A transfer of personal property or assets to a beneficiary as dictated by the will of the deceased.

Perpetual Fund

A type of investment fund that has no fixed maturity date, often aiming to provide investors with a steady income indefinitely.