The differences between the short run and the long run in macroeconomics .

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Answer 1

Question

Chapter 38, Problem 1DQ

To determine

The differences between the short run and the long run in macroeconomics.

Expert Solution & Answer

Explanation of Solution

Differences between the short run and the long run in macroeconomics:

1. In the short run, input prices do not respond to the change in the price level. That is, input prices are inflexible. In the long run, however, input prices are flexible.

2. In the long run, the economy will adjust itself. That is, there is no need of government intervention. But in the short run, fiscal and monetary policies are required to stabilize the economy.

The distinction between the short run and the long run is important to have better analysis of short run and long run aspects.

Economics Concept Introduction

Concept introduction:

Short run: Short run refers to the time period which does not allow the change in capital to adjust with the market situation.

Long run: Long run refers to the time period which allows the change in capital to adjust with the market situation.

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Answer 2

Question

Chapter 38, Problem 1DQ

To determine

The differences between the short run and the long run in macroeconomics.

Expert Solution & Answer

Explanation of Solution

Differences between the short run and the long run in macroeconomics:

1. In the short run, input prices do not respond to the change in the price level. That is, input prices are inflexible. In the long run, however, input prices are flexible.

2. In the long run, the economy will adjust itself. That is, there is no need of government intervention. But in the short run, fiscal and monetary policies are required to stabilize the economy.

The distinction between the short run and the long run is important to have better analysis of short run and long run aspects.

Economics Concept Introduction

Concept introduction:

Short run: Short run refers to the time period which does not allow the change in capital to adjust with the market situation.

Long run: Long run refers to the time period which allows the change in capital to adjust with the market situation.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 38, Problem 1DQ

To determine

The differences between the short run and the long run in macroeconomics.

Expert Solution & Answer

Explanation of Solution

Differences between the short run and the long run in macroeconomics:

1. In the short run, input prices do not respond to the change in the price level. That is, input prices are inflexible. In the long run, however, input prices are flexible.

2. In the long run, the economy will adjust itself. That is, there is no need of government intervention. But in the short run, fiscal and monetary policies are required to stabilize the economy.

The distinction between the short run and the long run is important to have better analysis of short run and long run aspects.

Economics Concept Introduction

Concept introduction:

Short run: Short run refers to the time period which does not allow the change in capital to adjust with the market situation.

Long run: Long run refers to the time period which allows the change in capital to adjust with the market situation.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 38, Problem 1DQ

To determine

The differences between the short run and the long run in macroeconomics.

Expert Solution & Answer

Explanation of Solution

Differences between the short run and the long run in macroeconomics:

1. In the short run, input prices do not respond to the change in the price level. That is, input prices are inflexible. In the long run, however, input prices are flexible.

2. In the long run, the economy will adjust itself. That is, there is no need of government intervention. But in the short run, fiscal and monetary policies are required to stabilize the economy.

The distinction between the short run and the long run is important to have better analysis of short run and long run aspects.

Economics Concept Introduction

Concept introduction:

Short run: Short run refers to the time period which does not allow the change in capital to adjust with the market situation.

Long run: Long run refers to the time period which allows the change in capital to adjust with the market situation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 38, Problem 1DQ

To determine

The differences between the short run and the long run in macroeconomics.

Expert Solution & Answer

Explanation of Solution

Differences between the short run and the long run in macroeconomics:

1. In the short run, input prices do not respond to the change in the price level. That is, input prices are inflexible. In the long run, however, input prices are flexible.

2. In the long run, the economy will adjust itself. That is, there is no need of government intervention. But in the short run, fiscal and monetary policies are required to stabilize the economy.

The distinction between the short run and the long run is important to have better analysis of short run and long run aspects.

Economics Concept Introduction

Concept introduction:

Short run: Short run refers to the time period which does not allow the change in capital to adjust with the market situation.

Long run: Long run refers to the time period which allows the change in capital to adjust with the market situation.

Answer 6

Chapter 38, Problem 1DQ

To determine

The differences between the short run and the long run in macroeconomics.

Expert Solution & Answer

Explanation of Solution

Differences between the short run and the long run in macroeconomics:

1. In the short run, input prices do not respond to the change in the price level. That is, input prices are inflexible. In the long run, however, input prices are flexible.

2. In the long run, the economy will adjust itself. That is, there is no need of government intervention. But in the short run, fiscal and monetary policies are required to stabilize the economy.

The distinction between the short run and the long run is important to have better analysis of short run and long run aspects.

Economics Concept Introduction

Concept introduction:

Short run: Short run refers to the time period which does not allow the change in capital to adjust with the market situation.

Long run: Long run refers to the time period which allows the change in capital to adjust with the market situation.

Answer 7

Chapter 38, Problem 1DQ

To determine

The differences between the short run and the long run in macroeconomics.

Answer 8

Expert Solution & Answer

Explanation of Solution

Differences between the short run and the long run in macroeconomics:

1. In the short run, input prices do not respond to the change in the price level. That is, input prices are inflexible. In the long run, however, input prices are flexible.

2. In the long run, the economy will adjust itself. That is, there is no need of government intervention. But in the short run, fiscal and monetary policies are required to stabilize the economy.

The distinction between the short run and the long run is important to have better analysis of short run and long run aspects.