Which of the Following Statements Is True

question 174

Multiple Choice

Which of the following statements is true?

• A)Short-run economic fluctuations are made worse because prices are flexible.
• B)Short-run economic fluctuations would be less severe if prices were inflexible.
• C)If prices were fully inflexible, there would be no short-run economic fluctuations.
• D)If prices were fully flexible, there would be no short-run economic fluctuations.

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Definitions:

Market Share

The portion of a market controlled by a particular company or product.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, not necessarily coinciding with the calendar year.

Sales

The activity or business of selling products or services.

Partnership

A sanctioned business arrangement in which two or more persons co-manage and equally divide profits.