The long run in macroeconomic analysis is a period:
A) in which nominal wages and other prices are flexible.
B) in which wages are sticky.
C) of less than 1 year.
D) of 1-2 years.

Question

Quizplus · Accepted Answer

The long run in macroeconomic analysis is a period where nominal wages and other prices are flexible. This means that wages and prices can adjust to changes in the economy, and there is no fixed period of time for the long run, but it is generally considered to be more than a year. Choice B is incorrect because it describes the short run, where wages are typically sticky and do not adjust quickly to changes in the economy. Choices C and D are also incorrect because they define specific time periods, which are not necessarily indicative of the long run.

The Long Run in Macroeconomic Analysis Is a Period