Because Prices Are Sticky, a Positive Demand Shock Will Lead

question 62

Multiple Choice

Because prices are sticky, a positive demand shock will lead to

• A) no change in unemployment.
• B) an increase in unemployment.
• C) a decrease in unemployment.
• D) an unpredictable change in unemployment.

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Definitions:

Widower

A man who has lost his spouse through death and has not remarried.

Neurofibrillary Tangles

Abnormal accumulations of a protein called tau that form inside neurons, contributing to neurodegenerative diseases such as Alzheimer's disease.

Cerebral Cortex

The gray, convoluted covering of the cerebral hemispheres that is responsible for the higher mental processes of language, memory, and thinking.

Alzheimer's

A progressive neurodegenerative disease characterized by memory loss, cognitive decline, and personality changes, resulting from the death of brain cells and the breakdown of connections between them.