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The length of time between the short run and long run varies across sectors of the economy. For the following industry estimate the time it takes to reach the “long run” based upon knowledge of how quickly prices in this industry change in response to the given shock. Describe the rational underlying each of the estimates. 1. Maruti car prices after auto workers receive an increase in wages

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The length of time between the short run and long run varies across

sectors of the economy. For the following industry estimate the time it takes to reach the “long run” based upon knowledge of how quickly prices in this industry change in response to the given shock. Describe the rational underlying each of the estimates.

1. Maruti car prices after auto workers receive an increase in wages

 
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