A classical objection to Keynesian sticky price models is that
A)nominal wages are always fixed.
B)real shocks are more important than nominal shocks.
C)it is easier for firms to change prices rather than change output.
D)it is cheaper for firms to change output rather than change prices.
E)sticky price models are internally inconsistent.

Question

Quizplus · Accepted Answer

The Answer is C

A Classical Objection to Keynesian Sticky Price Models Is That