1. With regard to aggregate supply and demand, the key difference between the short run and the long run is that

A. the short run never lasts beyond 2 years B. business cycles are long-run phenomena C. in the long run all prices are flexible D. at least two of the above

2. In the long run, aggregate supply

A. does not depend on prices B. increases with prices C. is determined only by the supply of labor and capital D. none of the above