If Prices Are "Sticky" in the Short Run, Then

question 57

Multiple Choice

If prices are "sticky" in the short run, then:

• A) The economy will respond to demand shocks primarily through changes in output and employment
• B) The economy will respond to demand shocks primarily through changes in prices and inflation
• C) Prices will adjust to equalize the quantities demanded and supplied of goods and services
• D) Unemployment will not change in response to a demand shock

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Definitions:

Saccadic Eye Movements

Rapid, ballistic movements of the eyes that abruptly change the point of fixation from one location to another.

Visual Sensations

Experiences derived from the stimulation of the eye's photoreceptors by light, leading to the perception of sight.

Eidetic Imagery

The rare ability to recall images, sounds, or objects in memory with extreme precision and vividness, often referred to as photographic memory.

Visual Memories

The aspect of memory involved in the encoding, storage, and retrieval of visual information, enabling recall of faces, places, objects, and experiences.