Problem
1. Distinguish between the short run and the long run as they relate to macroeconomics. Why is the distinction important?
2. Which of the following statements are true? Which are false? Explain why the false statements are untrue.
a. Short-run aggregate supply curves reflect an inverse relationship between the price level and the level of real output.
b. The long-run aggregate supply curve assumes that nominal wages are fixed.
c. In the long run, an increase in the price level will result in an increase in nominal wages.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.