Which of the following statements best describes price flexibility in the economy?
A. Prices tend to be sticky in the short run and stuck in the long run.
B. Prices tend to be just as sticky in the short run as in the long run.
C. Prices tend to be sticky in the short run but become more flexible over time.
D. Prices tend to be flexible in the short run but become more sticky over time.
Answer: C
You might also like to view...
The maturation date of a bond is the date at which:
A. the principal will be repaid. B. dividend payments will be made. C. taxes on the bond are due. D. coupon payments will be made.
Most business people calculate marginal cost and marginal revenue to decide how much to produce
a. True b. False Indicate whether the statement is true or false
In which of the following decades was there both high inflation and rapid money supply growth in the US?
a. the 1970's and the 1990's b. the 1970's but not the 1990's c. the 1990's but not the 1970's d. neither the 1970's nor the 1990's
The concept that a student is enjoying the benefits of police protection even though she does pays taxes is called
A. the principle of anti-trust. B. the free-rider problem. C. the negative externality principle. D. the principle of rival consumption.