All of the Following Statements About Sticky Prices Are True

Multiple Choice

All of the following statements about sticky prices are true except:

A) in the short run, some wages and prices are sticky.
B) the sticky-price model describes the equilibrium toward which the economy slowly gravitates.
C) for studying year-to-year fluctuations, most macroeconomists believe that price stickiness is a better assumption than is price flexibility.
D) magazine publishers tend to change their newsstand prices only every three or four years.