When decision makers have time to fully adjust to changes in the overall price level,we refer to this as
A) the short run.
B) the long run.
C) short-run equilibrium.
D) a period of time longer than one year.
E) equilibrium.

Question

Quizplus · Accepted Answer

The long run refers to a period of time long enough for decision makers to fully adjust to changes in the overall price level. In the long run, input prices, output prices, and expectations can all adjust to changes in the price level.

When Decision Makers Have Time to Fully Adjust to Changes