If prices of goods and services quickly adjust to demand shocks, then:
A) Firms would find it difficult to produce at their optimal output rates
B) Output rates would quickly adjust to changes in demand
C) Firms would find it easier to produce at their optimal output rates
D) The economy would experience severe short-run fluctuation

Question

Quizplus · Accepted Answer

The Answer of If prices of goods and services quickly adjust to demand shocks, then:
A) Firms would find it difficult to produce at their optimal output rates
B) Output rates would quickly adjust to changes in demand
C) Firms would find it easier to produce at their optimal output rates
D) The economy would experience severe short-run fluctuation

If Prices of Goods and Services Quickly Adjust to Demand