The economy's ability to coordinate economic activity is hindered by
A) sticky wages causing sticky prices.
B) auction prices.
C) workers whose wages change quickly.
D) all of the above

Question

Quizplus · Accepted Answer

Sticky wages cause firms to be unable to adjust their prices quickly in response to changes in supply and demand. This can lead to imbalances in the economy, as prices may be too high in certain markets while too low in others. This hinders the economy's ability to coordinate economic activity efficiently. Auction prices and workers with quickly changing wages do not necessarily have a significant impact on the coordination of economic activity.

The Economy's Ability to Coordinate Economic Activity Is Hindered by