What is the best definition of the short term in the short-term model?
A)about two years
B)There is no such thing as the short term.
C)the length of time for short-term deviations to return to their long-run values
D)the length of a recession
E)the amount of time the economy spends at its potential output

Question

Quizplus · Accepted Answer

In the short-term model, the short term refers to the length of time for short-term deviations from the long-run values to return to their equilibrium levels. This usually refers to a period of a few years.

Answer: B
 This choice is incorrect as the short term is a well-defined concept in macroeconomics and refers to a specific period of time.

What Is the Best Definition of the Short Term in the Short-Term