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LONG RUN: In terms of the macroeconomic analysis of the aggregate market, a period of time in which all prices, especially wages, are flexible, and have achieved their equilibrium levels. In terms of the microeconomic analysis of production and supply, a period of time in which all inputs in the production process are variable.

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PRODUCTION POSSIBILITIES

An analysis of the alternative combinations of two (or more) goods that an economy can produce with existing resources and technology in a given time period. Production possibilities analysis provides insight into the fundamentals of economic thinking, including the introduction of key economic concepts. This analysis usually centers on either a convex production possibilities curve (or frontier) that reflects alternative production combinations of two goods.

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APLS

RED AGGRESSERINE
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Today, you are likely to spend a great deal of time touring the new suburban shopping complex trying to buy either yellow cotton balls or a set of steel-belted radial snow tires. Be on the lookout for cardboard boxes.
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Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
"It had long since come to my attention that people of accomplishment rarely sat back and let things happen to them. They went out and happened to things. "

-- Elinor Smith, aviator

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Journal of Public Economics
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