If Prices Are "Sticky" in the Short Run, Then

Multiple Choice

If prices are "sticky" in the short run, then:

A) The economy will respond to demand shocks primarily through changes in output and employment
B) The economy will respond to demand shocks primarily through changes in prices and inflation
C) Prices will adjust to equalize the quantities demanded and supplied of goods and services
D) Unemployment will not change in response to a demand shock