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

question 286

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 increases their sales.
• B)higher than desired prices which depresses their sales.
• C)lower than desired prices which increases their sales.
• D)lower than desired prices which depresses their sales.

Identify and apply strategies to make communication efforts effective.

Recognize all parties affected by an organization's actions and the importance of stakeholders.

Learn methods to benefit an audience with your message.

Analyze the link between strong communication skills and lower employee turnover.

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or activities to raise revenue or discourage their use.

Revenue

The total income generated by a business or organization from its normal business operations.

Supply Curve

A graphical representation showing the relationship between the quantity of goods suppliers are willing to produce and the price of those goods.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service.