Multiple Choice
People had been expecting the price level to be 120 but it turns out to be 122. In response Robinson Tire Company increases the number of workers it employs. What could explain this?
A) Both sticky price theory and sticky wage theory
B) Sticky price theory but not sticky wage theory
C) Sticky wage theory but not sticky price theory
D) Neither sticky wage theory nor sticky price theory
Correct Answer:
Verified
Correct Answer:
Verified
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