Multiple Choice
The sticky-price theory of the short-run aggregate supply curve says that if the price level rises by 5% and people were expecting it to rise by 2%,then firms have
A) higher than desired prices which increases their sales.
B) higher than desired prices which depresses their sales.
C) lower than desired prices which increases their sales.
D) lower than desired prices which depresses their sales.
Correct Answer:
Verified
Correct Answer:
Verified
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