Menu costs will
A)increase the amount of training of workers.
B)result in price wars between businesses.
C)increase the legal minimum wage.
D)make prices inflexible downwarD.Learning Objective: 32-06 Describe how the AD-AS model explains periods of demand-pull inflation, cost-push inflation, and recession.

Question

Quizplus · Accepted Answer

Menu costs refer to the costs associated with changing prices. These costs can make businesses reluctant to lower prices, thus making prices inflexible downward.

Menu Costs Will