If Not All Prices Adjust Instantly to Changing Economic Circumstances

question 124

True/False

If not all prices adjust instantly to changing economic 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.

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Definitions:

Higher Brain Regions

Parts of the brain associated with complex functions such as thinking, decision making, emotion, and consciousness, typically including the cerebral cortex and associated structures.

Coma

A deep state of prolonged unconsciousness in which a person cannot be awakened, fails to respond to stimuli, and does not have a normal sleep-wake cycle.

Aggressive

Behavior characterized by physical or verbal harm towards others, or by forcefulness to achieve one's goals.

Multitasking

The ability or act of handling more than one task simultaneously or switching between tasks quickly.