In macroeconomics,the long run refers to:
A)how long it takes for prices of inputs to fully adjust to changes in economic conditions.
B)the time period when sticky wages are in place.
C)how long it takes for output decisions to adjust to changes in economic conditions.
D)None of these is true.

Question

Quizplus · Accepted Answer

In macroeconomics, the long run refers to the time period when prices of inputs such as labor, capital, and resources fully adjust to changes in economic conditions. This means that all factors of production have fully adapted to the changes and there are no longer any temporary or short-term effects that may influence the economy. The long run is often associated with the concept of equilibrium where supply and demand are balanced, and prices and output are stable.

In Macroeconomics,the Long Run Refers To