The Assumption of Short-Run Price Stickiness Implies

question 80

Multiple Choice

The assumption of short-run price stickiness implies:

• A) that we must adjust nominal quantities for changes in inflation.
• B) that we must always allow for unexpected inflation.
• C) that expected inflation is zero and nominal quantities are the same as real.
• D) a balanced budget.

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Definitions:

Unpleasant Emotions

Feelings that are distressing or causing discomfort, such as sadness, anger, or fear.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and jealousy.

Extraversion

A personality trait characterized by a preference for social interaction, high levels of energy, and positive emotions.

Agreeableness

Agreeableness is a personality trait characterized by trust, altruism, kindness, affection, and other pro-social behaviors.