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In macroeconomics, the short run refers to a period where some factors of production are fixed, and firms can only adjust variable inputs, leading to temporary fluctuations in output and employment levels. Conversely, the long run is a period where all factors of production can be varied, allowing for adjustments in capital and labor, leading to a more stable equilibrium of economic output and prices. Decisions made in the short run are often influenced by immediate market conditions, while long-run outcomes are shaped by structural changes in the economy.
What else can I help you with?
Is MPC less than APC in the short-run under keynesian macroeconomics?
APC is equal to MPC
What is short run under the Keynesian macroeconomics?
the demand for commodity x cab be described as completely price inelastic if :
Is monetary policy neutral in both the short run and the long run?
Monetary policy is not neutral in the short-run but neutral in the long-run. Besides, fiscal policy is not neutral in both short-run and long-run.
Why are firms willing to accept economic losses in the short run but not the long run?
There are sunk cost in the short run but not in long run.
Is the decision to shutdown made in the short run or long run?
It is made in the short run
What is Short-run cost?
In economics, short-run cost means that some factors are variable while others are fixed restricting entry or exit from the industry. The usage of long-run and short-run in macroeconomics differs from the macroeconomic usage.
Is MPC less than APC in the short-run under keynesian macroeconomics?
APC is equal to MPC
What is short run under the Keynesian macroeconomics?
the demand for commodity x cab be described as completely price inelastic if :
Is monetary policy neutral in both the short run and the long run?
Monetary policy is not neutral in the short-run but neutral in the long-run. Besides, fiscal policy is not neutral in both short-run and long-run.
Why are firms willing to accept economic losses in the short run but not the long run?
There are sunk cost in the short run but not in long run.
Which energy resource is cheaper in the short run In the long run?
Well in the short run, it is sunlight. In the long run, it is clean energy.:)
Which energy resources is cheaper in the short run In the long run?
Well in the short run, it is sunlight. In the long run, it is clean energy.:)
Is the decision to shutdown made in the short run or long run?
It is made in the short run
Is the price elasticity of supply usually larger in the short run or in the long run?
long run is ever smaller than short run
Difference between short run demand and long run demand?
In microeconomics, the long run is the conceptual time period in which there are no fixed factors of production, as to changing the output level by changing the capital stock or by entering or leaving an industry. The long run contrasts with the short run, in which some factors are variable and others are fixed, constraining entry or exit from an industry. In macroeconomics, the long run is the period when the general price level, contractual wage rates, and expectations adjust fully to the state of the economy, in contrast to the short run when these variables may not fully adjust
What is Short run and long run price elasticity of demand?
is the long run elasticity of demand is ever smaller than the short run elasticity of demand.
Distinguish between the concept of the short run and long run period theory of the firm?
Explain which of the following would be considered the long-run and short-run and why.
