Solved

If Prices of Goods and Services Quickly Adjust to Demand

Question 82

Multiple Choice

If prices of goods and services quickly adjust to demand shocks, then:


A) Firms would find it difficult to produce at their optimal output rates
B) Output rates would quickly adjust to changes in demand
C) Firms would find it easier to produce at their optimal output rates
D) The economy would experience severe short-run fluctuation

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q47: If nominal GDP increases from one year

Q69: What impact will a negative demand shock

Q77: In earlier centuries, the Roman and Chinese

Q78: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4895/.jpg" alt=" Refer to the

Q79: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4895/.jpg" alt=" Refer to the

Q80: Rapid and sustained economic growth of nations:<br>A)

Q83: The Great Recession occurred in:<br>A) 1970-74<br>B) 1985-87<br>C)

Q84: Increased optimism about the future will lead

Q86: Suppose that inventories are rising. We could

Q174: Which of the following statements is true?<br>A)Short-run