In macroeconomics, the long run is
A) a period long enough that participants in the economy will have enough time to gain all relevant information but not enough time to act correctly on that information.
B) the same period accountants use to measure long-term assets and liabilities.
C) a period long enough that participants in the economy will have enough time to gain all relevant information and enough time to act correctly on that information.
D) a period long enough that participants in the economy will have enough time to act correctly on all relevant information but not enough time to collect all of it.

Question

Quizplus · Accepted Answer

The long run in macroeconomics is a period long enough for all participants in the economy to gain all relevant information and act correctly on that information. This contrasts with the short run, which may be too short for all information to be collected and for all participants to act correctly. In accounting, the long run may refer to a period of several years, but this is not the same as the long run in macroeconomics.

In Macroeconomics, the Long Run Is