To explain the short-run fluctuations in the real-world economies, economists refer to:
A)the combination of unexpected changes in demand and inflexible prices.
B)the combination of unexpected changes in demand and flexible prices.
C)the combination of fully expected changes in demand and inflexible prices.
D)the combination of flexible prices and changes in the inventories.

Question

Quizplus · Accepted Answer

Economists often attribute short-run economic fluctuations to unexpected changes in demand coupled with inflexible prices, which prevent the market from adjusting immediately.

To Explain the Short-Run Fluctuations in the Real-World Economies, Economists