All of the following statements about sticky prices are true except: Select one: a. for studying year-to-year fluctuations, most macroeconomists believe that price stickiness is a better assumption than is price flexibility b. the sticky-price model describes the equilibrium toward which the economy slowly gravitates c. in the short run, some wages and prices are sticky d. magazine publishers tend to change their newsstand prices only every three to four years

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model
Section: Chapter Questions
Problem 2CQ
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All of the following statements about sticky prices are true except:
Select one:
a.
for studying year-to-year fluctuations, most macroeconomists believe that price stickiness is a better assumption than is price flexibility
b.
the sticky-price model describes the equilibrium toward which the economy slowly gravitates
c.
in the short run, some wages and prices are sticky
d.
magazine publishers tend to change their newsstand prices only every three to four years
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