When the prices of final goods and services increase more quickly than the prices of inputs, we say that:
A) the prices of some inputs are sticky.
B) the prices of some final goods are sticky.
C) the economy must be in the long run.
D) the economy is inefficient.

Question

Quizplus · Accepted Answer

When the prices of final goods and services increase more quickly than the prices of inputs, it suggests that some input prices are sticky, meaning they do not adjust as quickly as the prices of final goods and services.

When the Prices of Final Goods and Services Increase More