aggregate supply analysis requires looking at specific time horizons to predict macroeconomic outcomes.

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05-12-2022
Biology

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aggregate supply analysis requires looking at specific time horizons to predict macroeconomic outcomes.

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dipankarkundu4589 dipankarkundu4589 · Answer 1 · 2022-12-08T06:25:06-05:00

Macroeconomic outcomes can be predicted over very short, short, medium, and long time horizon. Prices do not alter in the very short run since they are very sticky.

A time horizon, sometimes referred to as a planning horizon, is a set point in the future where specific activities will be assessed or taken to have concluded. Assigning such a defined horizon time is important in an accounting, financial, or risk management regime so that alternatives can be assessed for performance over the same time frame. In the real world, a time horizon is physically impossible. Although end-of-day, end-of-week, and end-of-month dates matter in accounting, they are typically just single.

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