In macroeconomics, the immediate short run is known as a length of time when both input prices and output prices are fixed. In the short-run, input prices are fixed but output prices are variable. In the long run, input prices and output prices can vary. • What happens in the immediate short-run when AD falls from AD to AD2 to the price level and output? • What happens in the short-run when AD falls from AD to AD2 to the price level and output? • What will happen in the long-run?