The long-run aggregate supply relationship refers to:
A)a time period long enough for the prices of both outputs and inputs to adjust to changes in the economy.
B)any time period of more than a year.
C)a time period in which input prices can change, but output prices have not had time to adjust.
D)a time period in which output prices can change but input prices have not had time to adjust.

Question

The long-run aggregate supply relationship refers to:
A)​a time period long enough for the prices of both outputs and inputs to adjust to changes in the economy.
B)​any time period of more than a year.
C)​a time period in which input prices can change, but output prices have not had time to adjust.
D)​a time period in which output prices can change but input prices have not had time to adjust.

Quizplus · Accepted Answer

The long-run aggregate supply relationship refers to a time period long enough for the prices of both outputs and inputs to adjust to changes in the economy. This means that all prices have had time to adjust to changes in supply and demand, resulting in a stable level of output in the long run.

The Long-Run Aggregate Supply Relationship Refers To