Contrary to Behavior That Would Be Required to Eliminate Output

question 89

Multiple Choice

Contrary to behavior that would be required to eliminate output gaps, many firms in the economy:

• A)intentionally set prices below equilibrium prices in order to create shortages.
• B)adjust their prices only periodically.
• C)have fully-flexible prices that change constantly.
• D)only change the amount of output they produce in the long run, not in the short run.

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Definitions:

Believability

The quality of being perceived as credible or trustworthy, often a crucial factor in effective communication and persuasion.

Establish Credibility

The process of building trust and authority, often through demonstrating knowledge, expertise, and honesty.

Personal Characteristics

Refers to the traits, attributes, or qualities that define an individual's personality and behavior.

Establish Credibility

The process of building trust and authority in a particular field or subject, often through demonstrating expertise or experience.