Economists have found that firms are
A) less likely to change prices as a result of shocks to the aggregate economy than shocks limited to the firm's particular sector.
B) more likely to change prices as a result of shocks to the aggregate economy than shocks limited to the firm's particular sector.
C) equally likely to change prices as a result of shocks to the aggregate economy as they are shocks limited to the firm's particular sector.
D) unlikely to change prices as a result of both shocks to the aggregate economy and shocks limited to the firm's particular sector.
A
You might also like to view...
Colonialists tried to attract precious metals and coins by raising or attempting to raise the colonial price of the foreign money. This is called devaluation
Indicate whether the statement is true or false
Suppose that residents of a town are asked to vote on the best way to improve the safety of an intersection. The three choices are: a stoplight, a 4-way stop, and a 2-way stop. When the mayor asks the residents to choose between a stoplight and a 4-way stop, the residents choose a 4-way stop. Then, when the mayor asks them to choose between a 4-way stop and a 2-way stop, they choose a 2-way stop
However, if the mayor firsts asks the residents to choose between a 4-way stop and a 2-way stop, they choose a 2-way stop. Then, when the mayor asks the residents to choose between a 2-way stop and a stoplight, they choose a stoplight. What does this example illustrate? a. Arrow's impossibility theorem b. the Condorcet paradox c. a Borda count d. the median voter theorem