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Because Not All Prices Adjust Instantly to Changing Circumstances,an Unexpected

question 183

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Because not all prices adjust instantly to changing circumstances,an unexpected fall in the price level leaves some firms with higher-than-desired prices,and these higher-than-desired prices depress sales and induce firms to reduce the quantity of goods and services they produce.


Definitions:

Dice Game

A game of chance where players roll dice to achieve certain results or scores.

Distinctiveness

The characteristic of being clearly different from others in some aspect or quality.

Classroom Computer

A computer used within an educational setting to enhance learning, facilitate teaching, and provide access to digital resources.

Consistency

The quality of being predictable, reliable, and steady over time.

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