If prices (and wages) are flexible and all policy changes are anticipated, there is no distinction between the long run and the short run.

Question

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In the long run, all factors of production are fully employed and prices are flexible. In the short run, some factors of production may be unemployed and prices may be sticky. However, if prices and wages are flexible and all policy changes are anticipated, then there is no distinction between the long run and the short run.

If Prices (And Wages) Are Flexible and All Policy Changes