In macroeconomics, the long run refers to:
A) how long it takes for the prices of inputs to fully adjust to changes in economic conditions.
B) the time period over which sticky wages occur.
C) the time period the government uses to make budget projections.
D) a firm's profits in the next fiscal year.

Question

Quizplus · Accepted Answer

In macroeconomics, the long run refers to the period of time in which all inputs in the production process are variable, and can adjust fully to changes in economic conditions. This includes changes in technology, capital stock, and labor supply. It is a concept used to understand the dynamics of the economy over a longer period of time, usually several years or more.

In Macroeconomics, the Long Run Refers To