Which of the Following Statements Concerning Price Rigidity Is True

question 102

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.

---

Definitions:

Psychiatric Hospital

A medical facility specializing in the care and treatment of individuals with mental health disorders.

Word Salad

A confused or unintelligible mixture of seemingly random words and phrases, typically associated with severe mental illness.

Schizophrenia

A severe mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Unrelated Words

A set of words that do not have any direct connection or association with each other.