Comparing the Long Run and Short Run in Macroeconomics

In preparation for your Portfolio Project, spend some time reflecting on, and then writing a short paper about, the differences between the long run and the short run in macroeconomics.You will want to revisit Module 4 and incorporate material from Module 6.

In your paper, address the following:

• Describe the factors that affect long-run economic growth
• Apply these factors in an AS/AD framework
• Describe the mechanisms through which monetary policy and fiscal policy affect the economy
• Apply these factors in an AS/AD framework
• Discuss the tradeoff between affecting the economy in the short run and in the long run.