The long run refers to a period:
A) of decades.
B) during which capital and labor are sometimes not fully employed.
C) during which prices are flexible.
D) during which output deviates from the full-employment level.

Question

Quizplus · Accepted Answer

The long run is a period during which prices are flexible, meaning that they can adjust to changes in supply and demand. In the long run, firms can adjust their output levels and inputs of capital and labor to reach the full-employment level of output.

The Long Run Refers to a Period