In macroeconomics, the "short run" denotes the time period:
A) when some prices are sticky.
B) when all prices fully adjust.
C) less than one year.
D) within the same fiscal year.

Question

Quizplus · Accepted Answer

The short run in macroeconomics is typically defined as the period of time when some prices are sticky or do not fully adjust to changes in supply and demand. This can result in temporary imbalances in the economy, such as unemployment or inflation, that may eventually be corrected in the long run when all prices have had time to adjust. The length of the short run is not necessarily a fixed amount of time, but is generally considered to be less than the long run, which may be several years or more.

In Macroeconomics, the "Short Run" Denotes the Time Period