What is the focus of study in the long run in macroeconomics?
A)changes to actual GDP but not changes in potential GDP
B)an equal focus on potential GDP and actual GDP
C)primarily on changes to potential GDP
D)primarily on changes to the output gap,with a constant level of potential output
E)solely on the supply of factors of production

Question

Quizplus · Accepted Answer

The focus of study in the long run in macroeconomics is primarily on changes to potential GDP. This involves analyzing factors that impact the economy's ability to produce goods and services in the long term, such as technological advancements, changes in labor force demographics, and improvements in productivity. Changes to actual GDP are important in the short term, but the goal of macroeconomic analysis is to facilitate sustainable economic growth over time.

What Is the Focus of Study in the Long Run