The Phrase "Sticky Prices" Refers to the Prices Of

question 7

Multiple Choice

The phrase "sticky prices" refers to the prices of:

• A) some inputs taking longer to adjust to the price level than the output it creates.
• B) some output taking longer to adjust to the price level than the inputs used to create it.
• C) more durable goods "sticking," and not adjusting to the price level.
• D) consumer goods not adjusting to the price level.

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Definitions:

Return on Equity

A profitability ratio that highlights the level of profit a company achieves with the capital invested by shareholders.

Financial Statements

Comprehensive reports created to communicate an organization's financial performance, financial position, and cash flows over a specific period.

Days' Sales

This is a measure of a company’s operational efficiency, indicating how many days it takes for a company to turn its inventory into sales.