The more flexible prices are, the
A) greater demand shifts have to be to bring about a new equilibrium.
B) larger the shifts in supply will be after a change in demand.
C) greater the reliance by sellers to change the nominal price.
D) more quickly a shock to the economy can be absorbed.
D
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The aggregate demand curve plots
A) total expenditures against the level of employment. B) desired expenditures against production. C) employment against the price level. D) planned expenditures against the price level.
Every time you go to the grocery store, you try to wait in the shortest line. But the lines always seem to be roughly the same length. Why?
A. The cashiers work at the same speed. B. Other people are trying to choose the shortest line too. C. Random chance equalizes the length of the lines. D. The cashiers do not have an incentive to work faster.