People Had Been Expecting the Price Level to Be 120

question 162

Multiple Choice

People had been expecting the price level to be 120 but it turns out to be 122. In response Robinson Tire Company increases the number of workers it employs. What could explain this?

• A)Both sticky price theory and sticky wage theory
• B)Sticky price theory but not sticky wage theory
• C)Sticky wage theory but not sticky price theory
• D)Neither sticky wage theory nor sticky price theory

---

Definitions:

Coded

The process of transforming descriptions of medical diagnoses and procedures into universal medical code numbers.

Tuberculosis

An infectious condition that causes small rounded swellings on mucous membranes throughout the body.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue that extends from the brain, conducting signals to and from the brain to the rest of the body.

Brain

The brain is the organ located in the skull responsible for coordinating movement, interpreting the senses, regulating body processes, and facilitating thought and emotion.