New Keynesian Economics suggests each of the following as a possible explanation for the stickiness in wages and prices except
A) prices do not adjust immediately and completely in the short run because it is costly to change them.
B) a price adjustment or a failure to adjust prices on the part of one firm affects other firms.
C) one firm's best choice for its price depends on the prices that other firms are charging.
D) changing prices does not allow firms to maximize profits.
Correct Answer:
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