All of the Following Statements About Sticky Prices Are True

question 17

Multiple Choice

All of the following statements about sticky prices are true except:

• A) in the short run, some wages and prices are sticky.
• B) the sticky-price model describes the equilibrium toward which the economy slowly gravitates.
• C) for studying year-to-year fluctuations, most macroeconomists believe that price stickiness is a better assumption than is price flexibility.
• D) magazine publishers tend to change their newsstand prices only every three or four years.

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Definitions:

Theory of Mind

Theory of Mind is the cognitive ability to understand that others have beliefs, desires, intentions, and perspectives that are different from one's own.

Attachment Patterns

The emotional bonds formed between a child and caregiver, influencing how individuals form relationships throughout their lives.

Childcare

Supervision and care for children, provided by someone other than the child's legal guardians, which can range from day care services to in-home care.

Disorganized/Disoriented Attachment

A classification in attachment theory where a child displays inconsistent and erratic behaviors toward a caregiver, often resulting from trauma or neglect, leading to confusion and uncertainty in relationships.