1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
d1i1m1o1n [39]
3 years ago
7

. Distinguish between the short run and the long run as they relate to macroeconomics. Why is the distinction important

Business
1 answer:
STALIN [3.7K]3 years ago
5 0

Answer:

1. In the short run, wages and other prices are stagnant making the economy to run below or above the normal level. In the long run, wages and prices are fully flexible, and this allows the economy to run at its natural level.

2. This distinction is important because it helps us to see how difficult it could be to sustain the real gross domestic product and employment rates thus making the economy to run at a normal level or achieve its full potentials.  

Explanation:

Stickiness or stagnancy of wages can be seen in the fact that it is most time difficult to fluctuate or change the wages of workers overtime. The prices of most goods are also sticky when they remain unchanged over a given period of time. These conditions exist in the short run, and make the economy to run above or below its full potentials. The real GDP and unemployment levels are negatively affected.

In the long run, flexibility of wages and prices are achieved and this makes the economy to run at its full potentials. The real GDP as well as the employment rate are at their optimum level then.

You might be interested in
The republican party has used both the _____ and the eagle to identify itself.
ASHA 777 [7]
<span>The Republican Party currently uses the Elephant as a symbol to represent itself. This started in the 1870s when the political cartoonist Thomas Nast used it opposite a Donkey for the Democratic Party.</span>
5 0
3 years ago
By producing cars that do more than get riders to their destinations and back, mercedes-benz is addressing consumers’ ________ n
algol [13]

By producing motorcycles that do more than get riders to their destinations and back, Harley-Davidson is addressing consumers'<u> Functional and psychological</u> needs.

Harley Davidson was acquired through eastern-owned Kawasaki Motor Corporation LTD. Milwaukee, April 1, 2014 — Harley-Davidson, Inc. (HOG) has introduced a settlement to be obtained with the aid of Japanese-owned Kawasaki Motor organization LTD nowadays, Tuesday, April 1, 2014, for an undisclosed sum.

The stock Is Falling. Harley-Davidson inventory turned falling after the motorcycle maker stated its first-zone running income declined due to semiconductor shortages and other deliver-chain problems.

All Harley Davidson bikes for our marketplace are assembled within the US. Harley Davidson contracts elements to be products of diverse factories around the sector in places together as Germany, Taiwan, Japan, Mexico, and Italy.

Learn more about the Harley-Davidson here: brainly.com/question/17153630

#SPJ4

3 0
2 years ago
The Internal Rate of Return (IRR) represents which of the following: Multiple Choice The discount rate that must be lower than t
zmey [24]

Answer:

The discount rate that makes the net present value equal to zero.

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

It is the discount rate that makes the net present value equal to zero.

I hope my answer helps you

8 0
2 years ago
What are 3 categories of soft skills?
dimaraw [331]
Personal, social and methodical skills
5 0
2 years ago
Read 2 more answers
Which statement about attitude is correct?
Alex_Xolod [135]
Your answer would be D.


6 0
2 years ago
Read 2 more answers
Other questions:
  • What is product market?
    5·1 answer
  • Two management students, Frank and Neil, discuss the pros and cons of employee benefits. Frank states that unemployment insuranc
    14·1 answer
  • An economy can produce the following combinations of goods: 50X and 0Y, 40X and 10Y, 30X and 20Y, 20X and 30Y, 10X and 40Y, and
    10·1 answer
  • What are the advantages and disadvantages of making small, frequent purchases from just a few suppliers?
    5·1 answer
  • Capacity management, denominator-level capacity concepts. Match each of the following numbered descriptions with one or more of
    7·1 answer
  • 8. In the short run, there is a negative relationship between inflation and employment. A: True B. False​
    12·1 answer
  • Company Earnings per Share Market Value per Share
    5·1 answer
  • Beyond standard benefits like vacation time, sick leave, and health
    12·1 answer
  • If someone introduces himself using a formal introduction, you should _____.
    12·1 answer
  • Whenever price is ______ average variable costs but is ______ average total costs, the firm can pay part, but not all, its fixed
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!