Principles of Macroeconomics / Unit 10 MAC 0908 short lesson, about 20 seconds
How Long Is the Short Run
Captions available
The idea
Nobody knows precisely. The working estimate is that the short-run effect of a demand shift lasts roughly two to five years, which makes Keynesian analysis suit shorter horizons and neoclassical analysis longer ones.
In practice
Keynes answered that appeal with the remark that in the long run we are all dead.
Where people slip
Treat it as an estimate under dispute, not a measurement.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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