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How to pronounce long-run in English?

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hey everyone I'm mr. Willis and you will
love economics like few other economic
concepts aggregate supply is unique in
that it is analyzed through two scopes
the short run and the long run in this
video we'll focus on long-run aggregate
supply long-run aggregate supply is
defined as the total quantity of all
goods and services in real domestic GDP
that an economy is capable of producing
with the full employment of the
resources essentially long-run aggregate
supply shows us an aggregate economy's
production possibilities given that all
the resources are used to their full
capacity this is the long-run aggregate
supply curve notice that it is a
perfectly vertical curve implying that
the relationship between aggregate price
level and aggregate real GDP output
supplies is constant this means that as
prices increase due to inflation in the
aggregate economy firms across the
economy are not willing or able to
produce a greater quantity of real GDP
out and therefore supply the same
quantity as prices fall due to deflation
in the aggregate economy firms across
the economy are not willing or able to
produce a lesser quantity of real GDP
alpha and therefore supply the same
quantity remember that short-run and
long-run analysis refers to available
resources the land the labor and capital
used for the purpose of production in
the long run the quantity of all three
types of resources is variable meaning
it is possible for firms to increase or
decrease the quantity of all of these
types of resources with producing real
GDP out suppose C and H produces sugar
in the long run because the quantities
of land labor and capital available at
the CNH are variable and can change C
and H can compare different plant
capacities to find our optimal rate of
production fewer plants may mean a rate
of production that is too slow many
plants may mean a rate of production
that is too fast the firm can use
variable resources to
fine-tune their plant capacity to find
the optimal rate of production where
they can use all their available
resources to their full efficiency in
macroeconomics the law of variable
resources in long run announced is true
for all firms across the entire economy
meaning that the long-run aggregate
supply curve indicates the full
potential real GDP that the aggregate
economy can produce at a sustainable
rate given that all resources are
variable and so the long-run aggregate
supply curve is the equivalent of an
economy's production possibilities curve
or its growth trendline and the quantity
of real GDP output produced as a
long-run aggregate supply curve is known
as quantity full employment because
resource quantities are variable in the
long run long run aggregate supply
assumes that wages the cost of acquiring
resources are variable and rise and fall
with price level in fact we assume that
it will match inflation and deflation
exactly this means that in the long run
domestic firms will see revenues and
costs increase and decrease at exactly
the same rate with inflation and
deflation
this means that real profits don't
change for firms in the long run for
example if prices increased by 20
percent in the United States between
2016 and 2017 revenues will increase by
20 percent even if the same quantity of
goods are produced in Seoul but in the
long run
wages are variable and will increase at
the same rate as prices meaning costs
will also increase by 20 percent between
2016 and 2017 this means that in the
long-run domestic firms don't have a
profit motive to supply and greater
quantity of real GDP output at higher
prices and a lesser quantity of low GDP
output at lower prices as a result all
firms across the economy will produce
exactly the same quantity of goods and
services in the long run regardless of
price level and so in macroeconomics the
lack of a profit motive causes the
long-run aggregate supply curve to be
perfectly vertical fundamental changes
in economic conditions can cause an
increase or decrease in an economy's
capacity
to produce real GTP output at every
price level this is called a change in
long-run aggregate supply and it is
visualized by a shift of the long-run
aggregate supply curve there are four
determinants of long-run aggregate
supply resource prices and availability
actions of government like corporate tax
subsidies and regulation productivity
and technology and trade together we can
remember the four determinants of
long-run aggregate supply with the
acronym is there traffic we've already
learned how the determinants of rap can
affect short-run aggregate supply
however these determinants in addition
to trade policy affect long-run
aggregate supply as well that acronym
again is if they're traveling but change
in any of these four determinants due to
a change in economic conditions will
cause a fundamental change in long-run
aggregate supply which will lead to
changes in the aggregate economy a
rightward shift of the long-run
aggregate supply curve indicates that
long-run aggregate supply is increased
in the economy and the economy now has
the potential to produce a greater
quantity of real GDP at full capacity no
matter the price level in the aggregate
economy inflation or deflation doesn't
matter the domestic economy can now
produce more real GDP at full employment
a leftward shift of the long-run
aggregate supply curve indicates that
aggregate supply has decreased in the
economy and the economy now has the
potential to produce a lesser quantity
of real GDP output X will capacity no
matter the price level in the aggregate
economy inflation or deflation doesn't
matter the domestic economy simply can't
produce as much as it used to and now
will produce less real GDP at full
employment changes in resource prices
and availability actions of government
and productivity and technology affect
aggregate supply in the wrong one just
as it is in the short-run for example
suppose that the Spanish government
places a tariff on all resources
imported from foreign countries imported
resources are vital in the production of
goods and services in the Spanish
economy and as they become more
expensive production costs increase and
in the long run Spanish firms will lose
the capacity to produce real GDP output
at every price level
this increase in imported resource
prices will cause a decrease in long-run
aggregate supply and a decrease in the
production possibilities of the Spanish
economy suppose that the Greek
government decreases corporate profit
taxes on domestic firms without the
burden of paying higher tax rates firms
will scale production in order to earn
higher profits as more plants are built
they're filled with workers and capital
meaning that the capacity of the Greek
economy to produce real GDP output will
increase in the long run this decrease
in corporate profit taxes will cause an
increase in long-run aggregate supply
and increase the production
possibilities of the Greek economy now
suppose that community college and
university tuition costs increase by 100
percent in the United States as the
price of higher education doubles
potential members of the workforce will
find it harder to acquire a human
capital and other skills meaning that
they will not be as productive as they
could have been once they join the labor
force unfortunately this means that the
American workforce will be less
productive meaning that the capacity of
the United States economy to produce
real GDP output will decrease in the
long run this increase in college
tuition costs will cause a decrease in
long-run aggregate supply and decrease
the production possibilities of the
American economy trade policies can
affect the flow of important resources
and technologies in and out of economic
systems when trade is opened between two
countries it allows the flow of valuable
resources to be exchanged between those
countries allowing both countries to
acquire immediate inputs that they
wouldn't have without trade this means
that aggregate economies can expand
their production possibilities beyond
what they would have been able to
produce before trade likewise closing
off trade between two countries means
lesser quantities of valuable resources
are being exchanged between those
countries ultimately reducing an
economy's capacity to produce when trade
policies change if fundamentally changes
aggregate supply and therefore the
economy as a whole for example suppose
the United States government repeals a
free trade agreement with Canada and
Mexico imported resources in the
production of goods and services
in the American economy will become more
expensive and production costs will
increase in the long run as a result
American firms will lose the capacity to
produce real GDP output at every price
level the breakdown of trade between the
United States and their North American
partners will increase the price of
imported resources and will cause a
decrease in while an aggregate supply
which ultimately decreases production
possibilities for the American economy
now suppose that China exports
innovative technologies to North Korea
these new technologies boost
productivity of all North Korean firms
by 100 percent meaning North Korean
firms can now produce twice as many
goods and services as they used to in
the same amount of time this increase in
productivity of technology will cause an
increase in long-run aggregate supply
and increase the production
possibilities of the North Korean
economy and that's long-run aggregate
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minute video on comparing long-run
aggregate supply and PTC's thank you so
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I knew a lot of economic
you
[Music]

hey everyone I'm mr. Willis and you will

Toggle Transcript

long-run::adjective | Spocien Dictionary

long-run

adjective

relating to or extending over a relatively long time

Type	Words
Synonyms	long-term, semipermanent

the long-run significance of the elections.

Examples of long-run

long-run

When do you ever see the Colts quarterback audible to a run on a third-and-long?

From the bostonherald.com

He'll be in a daze exactly long enough for you to run out to the mattress store.

From the orlandosentinel.com

Of course, whether it can compete toe-to-toe in the long run remains to be seen.

From the techcrunch.com

In the long run, Texas will lose money as struggling students drop out, he said.

From the chron.com

That's not likely to make the cash situation any better in the long run, either.

From the businessweek.com

On this dynamic stage, nurturing partner networks is key to ensuring a long run.

From the businessweek.com

Inflation is a short-run pheonomenon in the long-run we do not assume inflation.

From the economist.com

Piling on more debt now will stunt rather than stimulate growth in the long run.

From the telegraph.co.uk

The junior will probably revise his opinion after he sees that long run on film.

From the sacbee.com

How to pronounce long-run in English?

long-run::adjective | Spocien Dictionary

abandonment

Related words

Examples of long-run

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