Multiple Choice
One reason why,in reality,prices are sticky in the short run is because
A) there are often costs to firms from changing prices.
B) purely competitive firms have no control over the price of their product and therefore cannot change the price, even if the market warrants a price change.
C) in the short run, the cost to changing prices always outweighs any benefit.
D) firms do not have time to react to macroeconomic shocks in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
Q19: From the Keynesian perspective,an increase in cyclical
Q20: As the economy nears the end of
Q21: Figure 9.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 9.1
Q22: Explain the relationship between business cycles in
Q23: If households spend $0.75 of each additional
Q25: Keynesian economics refers to the perspective that
Q26: From 1950 to 2009,the average length of
Q27: Okun's law summarizes the relationship between<br>A) unemployment
Q28: Figure 9.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 9.1
Q29: The percentage deviation of real GDP from