In the long run, wages and prices are considered to be:
A) sticky.
B) constant.
C) flexible.
D) irrelevant.

Question

Quizplus · Accepted Answer

In the long run, wages and prices are considered to be flexible due to the operation of the market forces of supply and demand. Over time, as supply and demand adjust to changes in the economy, wages and prices will change accordingly. This is the basis of the classical model of economics.

In the Long Run, Wages and Prices Are Considered to Be