Multiple Choice
Prices tend to be sticky because:
A) firms are worried that frequent price changes would annoy consumers.
B) most firms have agreements with each other to fix prices at profit-maximizing levels.
C) government controls most prices.
D) foreign competition discourages domestic firms from price changes.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: (Consider This)Suppose that Toyota buys a factory
Q6: Banks and other financial institutions:<br>A) are the
Q10: Kara's Kittens typically produces and sells at
Q47: Real GDP measures the<br>A)total dollar value of
Q73: The business cycle depicts<br>A)fluctuations in the general
Q88: Demand shocks cause problems in the macroeconomy
Q88: Prices tend to be more flexible when
Q164: The overall behavior of the economy<br>A)is remarkably
Q164: Economists believe that expectations have little impact
Q237: The business cycle is primarily concerned with