If Prices and Wages Are Slow to Adjust ("Sticky," Rather

question 47

Multiple Choice

If prices and wages are slow to adjust ("sticky," rather than flexible) :

• A)Inflation would adjust rapidly
• B)Output gaps would disappear quickly
• C)Inflation would adjust to output gaps sluggishly
• D)The short-run aggregate supply curve would not shift

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Definitions:

Managerial Success

involves achieving objectives effectively and efficiently through planning, organizing, leading, and controlling organizational resources.

Conditions of Risk

Circumstances in which there is uncertainty about the outcomes of actions, potentially resulting in loss or harm.

Uncertainty

A condition of limited knowledge where it is impossible to exactly describe an existing state, future outcomes, or more than one possible outcome.

Unanticipated Ways

Events or outcomes that occur in a manner not previously expected or predicted.