Multiple Choice
A difference between the economic long run and the short run is that:
A) the classical dichotomy holds in the short run but not in the long run.
B) monetary and fiscal policy affect output only in the long run.
C) demand can affect output and employment in the short run, whereas supply is the ruling force in the long run.
D) prices and wages are sticky in the long run only.
Correct Answer:

Verified
Correct Answer:
Verified
Q111: Most economists believe that prices are:<br>A) flexible
Q112: The aggregate demand curve is the _
Q113: Use the following to answer questions :<br>Exhibit:
Q114: Explain the meaning of monetary neutrality and
Q115: If the Fed reduces the money supply
Q117: Monetary neutrality, the irrelevance of the money
Q118: Starting from long-run equilibrium, if the velocity
Q119: A supply shock does not occur when:<br>A)
Q120: In the long run, the level of
Q121: When a long-term aggregate supply curve is