What would be the best description of what we assume about money prices in the short run?
A) Money prices of goods and services vary.
B) Money prices of goods and services are not related to each other.
C) Money prices of goods are fixed.
D) Money prices of services are fixed.
E) Money prices of goods and services are only temporarily fixed.

Question

Quizplus · Accepted Answer

In the short run, we assume that money prices of goods and services are only temporarily fixed. This means that while they may not adjust immediately to changes in supply and demand, they will eventually adjust in response to market forces. This temporary stickiness in prices can lead to fluctuations in output and employment levels in the short run.

What Would Be the Best Description of What We Assume