Bringing inflation down is more difficult than raising it because wages and prices are sticky downward.

Question

Quizplus · Accepted Answer

When wages and prices are sticky downward, it means they are slow to adjust to decreases in demand or prices, which makes it harder to lower inflation. In contrast, when they are sticky upward, it means they are slow to adjust to increases in demand or prices, which makes it easier to raise inflation.

Bringing Inflation Down Is More Difficult Than Raising It Because