Which of the following statements is false?
A) Some prices in an economy adjust faster than other prices.
B) Aggregate demand curves slope downward.
C) Firms may not adjust their prices immediately because they may be unable to figure out whether a decline in demand is temporary or permanent.
D) The absolute price of a good is the dollar or money price of the good.
E) none of the above

Question

Quizplus · Accepted Answer

All the statements A through D are true, reflecting various economic principles such as price stickiness, the nature of aggregate demand curves, reasons for delayed price adjustments by firms, and the definition of absolute price.

Which of the Following Statements Is False