The Sticky-Price Theory of the Short-Run Aggregate Supply Curve Says

question 86

Multiple Choice

The sticky-price theory of the short-run aggregate supply curve says that if the price level rises by 5% and people were expecting it to rise by 2%,then firms have

• A)higher than desired prices,which leads to an increase in the aggregate quantity of goods and services supplied.
• B)higher than desired prices,which leads to a decrease in the aggregate quantity of goods and services supplied.
• C)lower than desired prices,which leads to an increase in the aggregate quantity of goods and services supplied.
• D)lower than desired prices,which leads to a decrease in the aggregate quantity of goods and services supplied.

---

Definitions:

Project Participants

Individuals or groups who have a stake in the success and outcomes of a project.

Project Story

A narrative that outlines the journey of a project, including its challenges, milestones, solutions, and achievements.

Explanation

Providing information or clarification about a topic or concept to aid in understanding.

Team Members

Individuals who are part of a group working together towards a common goal or project.