According to the Sticky-Price Theory, Which Statement Is Consistent with an Unexpected

question 59

Multiple Choice

According to the sticky-price theory, which statement is consistent with an unexpected fall in the price level?

• A) Some firms' prices are lower than desired, which increases their sales.
• B) Some firms' prices are lower than desired, which depresses their sales.
• C) Some firms' prices are higher than desired, which increases their sales.
• D) Some firms' prices are higher than desired, which depresses their sales.

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Definitions:

Piaget

A Swiss developmental psychologist best known for his theory of cognitive development that describes how children develop logical thinking over time.

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Imaginative play where children create scenarios and roles that mimic real life or fantastical situations.

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A significantly sized cushion used for support or decoration in seating or bedding.

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A small horse breed with a distinctive gentle disposition and sturdy build, often used for riding and educational purposes.