The Cost to Firms of Changing Prices

question 243

Multiple Choice

The cost to firms of changing prices

• A)is small even when there is rapid inflation.
• B)is called a menu cost.
• C)does not exist if inflation is perfectly anticipated.
• D)all of the above

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Acquisition

The initial learning of the connection between the unconditioned stimulus and the conditioned stimulus when these two stimuli are paired.

Association

A connection or linkage between thoughts, ideas, feelings, or memories, influenced by experiences or learning.