Which of the following can help explain why prices might be "sticky"?
A) The rational expectations hypothesis
B) The policy irrelevance proposition
C) Real business cycles
D) Small menu costs
Correct Answer:
Verified
Q221: During the 1960s, many Keynesian economists felt
Q222: The real business cycle theory
A) is an
Q223: Stagflation means a
A) high rate of inflation
Q227: Which of the following would NOT cause
Q232: Q233: The menu cost theory suggests that Q234: Costs that deter firms from changing prices Q238: When a supply shock is permanent
A)there will
A)only the
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