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.

---

Definitions:

Detect

To find out or determine the presence or existence of something.

Monosaccharides

The simplest form of carbohydrates, consisting of single sugar molecules like glucose and fructose.

Carbon-to-hydrogen

The ratio of carbon atoms to hydrogen atoms in a molecule.

Carbon-to-oxygen

A ratio that compares the amount of carbon atoms to oxygen atoms in a molecule or compound.