The long run is a period of time
A) when the economy is at potential GDP.
B) when some input prices do not change.
C) when the inflation rate is zero.
D) longer than 1 year.
E) longer than 10 years.

Question

Quizplus · Accepted Answer

In the long run, an economy is expected to meet its potential GDP, reflecting a state where all resources are utilized efficiently, without the constraints of fixed inputs or prices that characterize the short run.

The Long Run Is a Period of Time