For the purpose of aggregate supply analysis,the long run is the period of time during which
A)aggregate supply adjusts to equal aggregate demand
B)excess aggregate supply is bought
C)excess aggregate demand is fulfilled
D)real wages are constant
E)all resource prices can be varied

Question

Quizplus · Accepted Answer

In the long run, all resource prices can be varied, allowing the economy to adjust to changes in demand and supply. This means that unlike the short run, there are no fixed factors of production, and firms can adjust their production levels to meet demand without any constraints. As a result, the economy can achieve equilibrium between aggregate demand and supply.

For the Purpose of Aggregate Supply Analysis,the Long Run Is