Which of the following characteristics define the long run in macroeconomics?
A)Factor prices are exogenous, and technology and factor supplies are constant.
B)Factor prices adjust to output gaps, and technology and factor supplies are changing.
C)Factor prices are exogenous, and technology and factor supplies are changing.
D)Factor prices adjust to output gaps, and technology and factor supplies are constant.
E)Factor prices are exogenous, technology and factor prices are exogenous.

Question

Quizplus · Accepted Answer

In the long run, factor prices adjust to eliminate output gaps, and technology and factor supplies can change, reflecting economic growth and development.

Which of the Following Characteristics Define the Long Run in Macroeconomics