Short run

From Conservapedia
This is the current revision of Short run as edited by Recorder (Talk | contribs) at 03:51, 12 February 2008. This URL is a permanent link to this version of this page.

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

The short run is a relatively brief period of time, such as a few months, during which big economic adjustments are impossible.

The short run in microeconomics is the period in which a firm cannot vary its plant scale or production capacity, but can adjust its output based on how intensively it uses its resources.

The short run in macroeconomics is the period during which most prices are sticky, meaning that market shortages or surpluses can occur because the economy's ability to self-correct is limited.