The long run is the period of time during which _____
A) real wage is exactly equal to nominal wage.
B) inflation is zero.
C) excess aggregate demand leads to a shortage.
D) real wages are constant.
E) all resource prices are variable.

Question

Quizplus · Accepted Answer

In the long run, all resource prices, including wages, are variable, allowing the economy to adjust to changes in demand and supply. This contrasts with the short run, where some prices might be fixed or sticky.

The Long Run Is the Period of Time During Which