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Aggregate Demand Decreases and Real Output Falls but the Price

question 90

Multiple Choice

Aggregate demand decreases and real output falls but the price level remains the same. Which of the following factors most likely contributes to downward price inflexibility in the immediate short run?


Definitions:

Stock Index

A statistical measure that tracks the performance of a specific basket of stocks, representing a particular market or a segment of it.

Correlations

A statistical measure that indicates the extent to which two or more variables fluctuate in relation to each other.

ADRs

American Depository Receipts (ADRs) are a type of negotiable security that represents shares in a foreign company and is traded on a local stock exchange but represents a specified number of shares in a foreign corporation.

Foreign Firms

Companies that are based in one country but operate and conduct business in other countries.

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