Given That Firms Change Their Prices Infrequently, a Business That

question 161

Short Answer

Given that firms change their prices infrequently, a business that has just raised its price will have a __________ relative price; over time as its price remains fixed its relative price __________.

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Definitions:

Sublimation

Sublimation is a defense mechanism proposed by Freud in which socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior, possibly resulting in a long-term conversion of the initial impulse.

Displacement

In psychology, a defense mechanism where an individual shifts negative feelings from the original source to a safer or more acceptable target.

Denial

A defense mechanism in which confrontation with a personal problem or with reality is avoided by denying the existence of the problem or reality.

Childrearing Methods

The practices and strategies used by parents and caregivers to raise and educate children, which can vary widely across different cultures and families.