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

Question

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

Quizplus · Accepted Answer

In the long run, wages and prices are considered to be flexible because they can adjust to changes in the economy such as changes in supply and demand. This allows the economy to reach equilibrium and avoid persistent inflation or deflation. While wages and prices may be sticky in the short run, they are expected to eventually adjust to market conditions in the long run.

​ in the Long Run, Wages and Prices Are Considered

in the Long Run, Wages and Prices Are Considered