Multiple Choice
Which of the following is not a factor that increases short-run price stickiness?
A) Consumers tend to prefer stable prices.
B) Stable prices make it easier for consumers to plan their spending.
C) A firm can lower its price without fear that rival firms will also lower their prices.
D) Firms try to avoid price wars.
Correct Answer:

Verified
Correct Answer:
Verified
Q65: Which of the following statements is true?<br>A)
Q66: Suppose a small economy produces only MP3
Q67: What impact will a negative demand shock
Q68: When firms face reduced demand for their
Q69: In economics, the word "shocks" refers to<br>A)
Q71: Real GDP can change due to changes
Q72: Which of the following is used to
Q73: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" Refer to the
Q74: Shocks to the economy occur when<br>A) stock
Q75: Savings are generated when current consumption is