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

question 17

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 leads to an increase in the aggregate quantity of goods and services supplied.
• B)higher than desired prices,which leads to a decrease in the aggregate quantity of goods and service supplied.
• C)lower than desired prices,which leads to an increase in the aggregate quantity of goods and services supplied.
• D)lower than desired prices,which leads to a decrease in the aggregate quantity of goods and services supplied

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Definitions:

Compensate Victims

To offer restitution or damages to individuals who have suffered harm or loss due to another's action or negligence.

Unloaded Gun

refers to a firearm that does not contain any ammunition in its chamber or magazine, thus unable to discharge a bullet.

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An act that creates a reasonable apprehension in another person of an imminent harmful or offensive contact.

Defamation

A false statement presented as fact that causes injury or damage to the character of the person it's about, potentially leading to legal action.