In terms of aggregate supply, the difference between the long run and the short run is that in the long run:
A)the price level is variable.
B)employment is variable.
C)real output is variable.
D)nominal wages and other input prices are variable.

Question

Quizplus · Accepted Answer

In the long run, nominal wages and other input prices are able to adjust to changes in the economy, allowing real output to reach full employment levels. This is not the case in the short run, where these input prices are sticky and do not adjust immediately, leading to a different relationship between real output and employment levels.

In Terms of Aggregate Supply, the Difference Between the Long