The Sticky-Price Theory of the Short-Run Aggregate Supply Curve Says

question 17

Multiple Choice

The sticky-price theory of the short-run aggregate supply curve says that when the price level is higher than expected,some firms will have

• A)higher than desired prices,which leads to an increase in the aggregate quantity of goods and services supplied.
• B)higher than desired prices,which leads to a decrease in the aggregate quantity of goods and service supplied.
• C)lower than desired prices,which leads to an increase in the aggregate quantity of goods and services supplied.
• D)lower than desired prices,which leads to a decrease in the aggregate quantity of goods and services supplied

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Definitions:

Instantaneous Obedience

The immediate compliance with commands or orders without hesitation or question, often emphasized in strict hierarchical organizations.

Self-Control

The ability to manage one's emotions, desires, or actions, especially in difficult situations or to achieve long-term goals.

Political Skills

The ability to understand and influence others in a social or professional setup for the achievement of personal or organizational objectives.

Organizational Goals

The objectives or targets that an organization aims to achieve, which guide its operations and strategic direction.