One Reason Why an Economy May Not Smoothly Adjust to a Macroeconomic

question 38

Multiple Choice

One reason why an economy may not smoothly adjust to a macroeconomic shock is that

• A) prices are flexible in the long run.
• B) prices are sticky in the short run.
• C) wages are sticky in the long run.
• D) prices and wages are sticky in the long run.

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Definitions:

Therapeutic Misconception

The misunderstanding among participants in clinical research that the primary purpose of a clinical trial is to benefit them individually, rather than to gather data for the advancement of medical knowledge.

Office

A place designated for professional or clerical work, often housing employees and their equipment.

Department of Health

A government agency responsible for public health policy, administration, and services.

Peer-Reviewed Journal

An academic publication in which articles are evaluated and approved by experts in the same field before publication.