The So-Called Ratchet Effect Refers to the Characteristic in the Economy

Multiple Choice

The so-called ratchet effect refers to the characteristic in the economy where product prices, wages, and per-unit production cost are flexible when

A) AD decreases but not when AD increases.
B) AD increases but not when AD decreases.
C) AS increases but not when AS decreases.
D) AD shifts but not when AS shifts.