Which of the Following Statements Concerning Price Rigidity Is TRUE

question 228

Multiple Choice

Which of the following statements concerning price rigidity is TRUE?

• A) Since the economy experiences continued inflation prices are not rigid.
• B) Prices will be rigid when there is unanticipated monetary policy but not when there is anticipated monetary policy.
• C) Data has clearly demonstrated that the long run aggregate supply curve is horizontal.
• D) When there are demand changes, firms will not change their price because of the costs associated with renegotiating contracts and informing customers of price changes.

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Definitions:

Locate Prospects

The process of identifying potential customers or clients for a business's products or services.

Selling

The process of convincing someone to purchase a product or service.

Preparation

The process of getting ready for an event, activity, or task by gathering information, resources, and making necessary arrangements.

Sales Process

A series of steps taken by a company or individual to sell a product or service, typically involving stages such as lead generation, qualification, presentation, and closing.