Question

What is the different between the short run and long run in macroeconomy?

What is the different between the short run and long run in macroeconomy?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In macroeconomy, prices and wages are sticky therefore, they do not adjust well to the changes in the market in the short-run. However, in the long-run prices and wages are fully flexible and they fully adjust to the market changes. Also, in the short-run, the economy may operate below or above the potential output level and unemployment rate can be higher lower than the natural rate unemployment. However, in the long-run, the economy operates at the potential output level and the unemployment level is equal to the natural rate of unemployment.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1(a)What is the difference between the long-run and the short-run? Give specific examples from two different...
1(a)What is the difference between the long-run and the short-run? Give specific examples from two different industries. (b)How do some firms minimize long-run costs with diseconomies of scale?
Post your findings on the differences between short-run and long-run aggregate demand and between short-run and...
Post your findings on the differences between short-run and long-run aggregate demand and between short-run and long-run aggregate supply. Post your explanatory notes on the comparison and contrast of aggregate demand and aggregate supply in terms of creating short-run and long-run equilibrium
25. In the economics for a company what is the difference between short run and long...
25. In the economics for a company what is the difference between short run and long run A) In the long run all factors of production can be changed, in the short run some factors of production are fixed B) In the short run all factors of production can be changed, in the long run some factors of production are fixed C) In the short run profits are less D) In the long run profits are less
What is the difference between short-run and long-run production time frame?
What is the difference between short-run and long-run production time frame?
Is the basic difference between the short run and the long run that the law of...
Is the basic difference between the short run and the long run that the law of diminishing returns applies in the long run, but not in the short run?
21) The main difference between the short run and the long run is that: A) in...
21) The main difference between the short run and the long run is that: A) in the short run all inputs are fixed, while in the long run all inputs are variable. B) in the short run the firm varies all of its inputs to find the least-cost combination of inputs. C) in the short run, at least one of the firm's input levels is fixed. D) in the long run, the firm is making a constrained decision about how...
Draw a graph of a long-run Phillips curve. Is it different from the short-run?
Draw a graph of a long-run Phillips curve. Is it different from the short-run?
Explain the difference between the “short run” and the “long run”. Be specific.
Explain the difference between the “short run” and the “long run”. Be specific.
Explain the difference between costs in the short run and long run
Explain the difference between costs in the short run and long run
1.        Is the basic difference between the short run and the long run that the...
1.        Is the basic difference between the short run and the long run that the law of diminishing returns applies in the long run, but not in the short run? 2.        Draw a typical production function and explain its shape. Below that diagram, draw an average product schedule and marginal product schedule. Indicate the relationship between the two diagrams. ##3         Explain why the marginal product of labour initially increases as more workers are hired and then eventually...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT