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:

Subcutaneous

Relating to or located beneath the skin's surface.

Intrathecal

Pertaining to the administration of drugs or other substances directly into the space under the arachnoid membrane of the brain or spinal cord.

Intramuscular

Intramuscular describes an injection given directly into the muscle, allowing for the rapid absorption of medication into the bloodstream.

Directions

Instructions or guidance on how to reach a destination, perform a task, or operate something.