In macroeconomics, the long run is determined by:
A) how long it takes for prices of inputs to adjust through the whole economy.
B) how long it takes for firms to vary all input quantities.
C) the longest contract length of a business.
D) how long it takes for output decisions to adjust to changes in economic conditions.

Question

Quizplus · Accepted Answer

In macroeconomics, the long run is determined by how long it takes for prices of inputs to adjust through the whole economy. In the long run, all inputs are variable and therefore prices of inputs and outputs will adjust to changes in economic conditions. This process can take some time, which is why the long run is not an immediate response to changes in the economy.

In Macroeconomics, the Long Run Is Determined By