All of the Following Statements About Sticky Prices Are True

question 17

Multiple Choice

All of the following statements about sticky prices are true except:

• A) in the short run, some wages and prices are sticky.
• B) the sticky-price model describes the equilibrium toward which the economy slowly gravitates.
• C) for studying year-to-year fluctuations, most macroeconomists believe that price stickiness is a better assumption than is price flexibility.
• D) magazine publishers tend to change their newsstand prices only every three or four years.

Grasp the graphical representation of increases and decreases in supply and demand.

Understand historical economic growth patterns and their geographical distribution.

Analyze factors influencing savings, investment, and economic growth rates.

Recognize trends in global working hours and productivity changes.

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Definitions:

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of mental disorders used by healthcare professionals.

Dysthymic Disorder

Dysthymic Disorder, now known as Persistent Depressive Disorder, is a long-term form of depression marked by persistent low mood and other depressive symptoms.

Hopelessness

Sense that the future is bleak and there is no way to make it more positive.

Persistent Depressive Disorder

A form of depression that lasts for at least two years, characterized by a persistent depressed mood and other symptoms.