The overall behavior of the economy
A)is remarkably stable over time.
B)differs over time as prices become increasingly flexible in the months and years following a shock.
C)differs over time as prices become increasingly sticky in the months and years following a shock.
D)is easily controlled and stabilized by government policy.

Question

Quizplus · Accepted Answer

The economy's behavior changes over time as prices adjust to shocks, becoming more flexible, which can lead to different economic conditions.

The Overall Behavior of the Economy