Prices may be sticky in the short run because
A) consumers are irrational and do not react fast enough.
B) firms are set in their ways of conducting business.
C) its too costly for firms to change prices.
D) government regulated money prices.
E) there is no upward pressure on prices in the market.
Correct Answer:
Verified
Q15: Keynesian sticky price models are typically called
A)
Q16: In the New Keynesian model, an increase
Q17: The Yd(IS)curve in the New Keynesian model
Q18: The natural rate of interest is
A) the
Q19: When the central bank targets the interest
Q21: In the New Keynesian model, an increase
Q22: In the New Keynesian sticky wage model,
Q23: An increase in future total factor productivity
Q24: The New Keynesian model predicts that
A) money
Q25: Changes in the money supply in the
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