What Is Meant by the Phrase "Prices Are Sticky

question 135

Multiple Choice

What is meant by the phrase "prices are sticky"?

• A) In the short run,suppliers expect future prices to remain constant.
• B) In the short run,contracts,loans,and wages are often fixed.
• C) In the long run,contracts,loans,and wages are often fixed.
• D) In the long run,suppliers expect future prices to remain constant.
• E) In the long run,people demand constant real wages.

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Definitions:

Used Textbook

A previously owned textbook that may be sold at a lower price than a new version of the same book.

Statistical Discrepancy

The difference between two figures that are expected to be equivalent, often arising from timing or measurement errors in data collection.

GDP

A metric for evaluating the economic success of a nation, Gross Domestic Product calculates the overall value of goods and services generated over a designated period.

GNP

Gross National Product; the total value of goods produced and services provided by a country during one year, including net income from abroad.