We Assume Flexible Prices in the Long Run, but Whenever

question 129

Multiple Choice

We assume flexible prices in the long run, but whenever it is costly to change prices (menu costs) or when there are long-term contracts for labor or capital:

• A) short-run prices tend to be flexible.
• B) short-run prices tend to be sticky.
• C) long-run prices tend to be sticky.
• D) firms have to pay higher costs and therefore have to raise prices.

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The proportion or number of individuals within a population who are confined in prison.

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Countries located in the continent of Europe, each with its distinct government, culture, and history.

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Short for the United States, a country in North America known for its significant global influence in economic, political, and cultural fields.

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