When Studying the Short-Run Behavior of the Economy, an Assumption

question 3

Multiple Choice

When studying the short-run behavior of the economy, an assumption of ______ is more plausible, in contrast to studying the long-run equilibrium behavior of an economy, when an assumption of ______ is more plausible.

• A) inflation; unemployment
• B) unemployment; inflation
• C) flexible prices; sticky prices
• D) sticky prices; flexible prices

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Definitions:

Credibility

The quality of being trusted and believed in, often resulting from a history of accuracy, reliability, and integrity.

Unethical

Actions or behaviors that go against moral principles or professional standards.

Process Consultants

Experts who advise organizations on how to improve the efficiency and effectiveness of their operational processes.

Word of Mouth

The informal transmission of information, ideas, or opinions from one person or group to another, typically through verbal communication.