In New Keynesian Macroeconomics,when Marginal Costs Are Too Sticky to Change

Multiple Choice

In New Keynesian macroeconomics,when marginal costs are too sticky to change in proportion to nominal aggregate demand,prices ________ and so menu costs ________ needed to explain business cycles.

A) are also sticky,are
B) are also sticky,are not
C) are still perfectly flexible,are
D) are still perfectly flexible,are not