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What Do We Need to Assume About Firms in the Sticky

Question 11

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What do we need to assume about firms in the sticky price model?

What do we need to assume about firms in the sticky price model?


A) They accommodate any demand at the given price.
B) They hire until the real wage equals the average labor productivity.
C) They maximize only current profits.
D) They adapt the price to current conditions.

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