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
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Refer to the diagram above, which represents a country's supply and demand for an internationally traded good. If PW is the world price, and a foreign country engages in dumping by selling at P2, total domestic consumption will ________ to ________
A) increase; Q2 B) decrease; zero C) increase; Q5 D) increase; Q3
The time interval between observations can be all of the following with the exception of data collected
A) daily. B) by decade. C) bi-weekly. D) across firms.