which of the following statements about price stickiness or flexibility is true?
Business cycle fluctuations typically arise because: The actual demand for goods and services ends up being more or less than what firms were expecting. Refer to the graphs above. Prices of many raw materials are much more flexible than the prices of final goods and services. Because prices are sticky positive demand shock will lead to: Rapid and sustained economic growth of nations: Increased optimism about the future will lead to: More current investment and more future consumption, Occurs when current spending is less than current incomes.

She has just submitted a purchase order to the supplier. Multiple Choice Prices of many raw materials are only slightly more flexible than the prices of final goods and services. (6 markah)​, Free Points For BYS Army Come army Here For Free Points Come......Soranghea Army"U Can Hate Us But Not Army"-BTS"U Can Haye Us But Bot BTS"-ArmyLove Y 'All types of works and jobs are occupation.' An unexpected negative demand shock would lead to a decrease in inventories. Firms that have to deal with the possibility of price wars often have sticky prices. Apple builds a new plant to manufacture iPads. Co-ordinate shipping with the supplier. Solicit for a bid from the supplier. Suppose a firm is currently producing 500 computers per week and charging a price of $1000. Which of the following statements best describes price flexibility in the economy? Economists believe that most short-run fluctuations: One major reason for sticky prices could be that firms selling final goods and services do not want to annoy customers with frequently changing prices. Economists believe that most short-run fluctuations are the result of supply shocks. Fill out a requisition form. Does not tell us whether what has happened is unexpectedly bad or unexpectedly good, Inflation refers to an increase in the overall level of prices, The period known as the "Industrial Revolution" began in the United States in the late 1800's, An increase in worker productivity will lead to a, Which of the following is the best example of financial investment, If prices of goods and services quickly adjust to demand shocks then, Firms would find it easier to produce at their optimal output rates, When prices are inflexible the economy will respond to demand shocks through short run changes in output and unemployment, Macroeconomics is primarily concerned with studying two broad topics, Long-run economic growth and short-run business cycles, If prices are "sticky" in the short run then, The economy will respond to demand shocks primarily through changes in output and employment, Under modern economic growth the annual average increase in output per person is, Short-run fluctuations in output and employment are referred to as, Resources are devoted toward increasing future output, Economists are in general agreement as to what caused the Great Recession and how to properly deal with it. Tend to reduce short-run price stickiness because firms know they can lower their own prices, without rival firms lowering their prices, This textbook can be purchased at www.amazon.com. Firms' inventories will decrease, causing them to increase production. Prices tend to sticky in the short run, but become more flexible over time. Real GDP will decrease, inflation will increase, and unemployment will increase. Prices of many raw materials are much more flexible than the prices of final goods and services. 78. We could expect that in the future: Situations in which firms expect one thing to happen but then something else happens are called: Economists are sharply divided over how to best fight the Great Recession.

The Great Recession of 2007-09 was triggered by a: Sharply rising oil prices are most likely to lead to a: Which among the following countries had the highest GDP per person in 2011? Refer to the graphs above. Prices of many raw materials are less flexible than the prices of final goods and services. Suppose that prices are sticky in the short-run. Which of the following statements about price stickiness or flexibility is true? Which of the following statements about price stickiness or flexibility is true? There are menu costs involved in the changing price of products. Course Hero is not sponsored or endorsed by any college or university. Refer to the graphs above. Suppose a firm is currently producing 500 computers per week and charging a price of $1000. Which of the following is NOT a factor that increases short-run price stickiness? Economists and policy makers are committed to encouraging a high and growing level of real GDP because: This means greater consumption opportunities.

Which of the following statements is true? Real GDP is calculated using current prices of outputs. If prices of goods and services are free to quickly adjust then: A negative demand shock would have no short-run effect on unemployment. Explanations about what caused the Great Recession differ sharply among economists. For which of the following goods is the price least likely to be flexible A, 50 out of 58 people found this document helpful. If the prices of goods and services were flexible then the economy could always produce at its optimal capacity. The tip of a match is ignited as it is struck against the matchbox. For which of the following goods is the price least likely to be flexible? Which of the following statements about price stickiness or flexibility is true? How will the firm respond to a negative demand shock if prices are flexible? This makes the price of the product rigid as it must cover all costs of production including wages. Decisions about saving and investment are: Complicated by the fact that the future is uncertain. Prices of many raw materials are less flexible than the prices of final goods and services. Topic: How Sticky Are Prices? rform next? Consumers tend to prefer stable prices B. Which of the following best represents a positive demand shock when prices are flexible? The overall behavior of the economy: differs over time as prices become increasingly more flexible in the months and years following a shock. A restaurant owner buys a freezer to store ingredients for the restaurant meals.

Justify this statemexamples.tione? Sticky prices could be the result of firms being afraid of price wars. Firms' inventories will increase, causing them to cut production. Ultimately, real GDP will decrease and unemployment will increase. Savings are generated when current consumption is less than current output. Actual demand for output is less than expected, Tend to reduce the severity of short-run fluctuations. Suppose a firm is currently producing 500 computers per week and charging a price of $1000. The Great Recession of 2007-09 illustrated the situation where a negative demand shock occurred and: The economy's overall price level was "sticky". …, Match each phone etiquette with the appropriate scenario, Match each phone etiquette attribute with the appropriate scenario, Help me solve this decision tree in the attachment (for 20points and brainliest answer. AACSB: Analytic Bloom's: Level 1 Remember Difficulty: 2 Medium Learning Objective: 06-05 Describe why economists believe that "shocks" and "sticky prices" are responsible for short-run fluctuations in output and employment. The so-called Austrian Explanation involves the following factors except: A massive euphoric bubble in housing prices that popped, Indicate that society is not using a large portion of the talent and skills of its people, Occur when one firm lowers its price and rival firms react by lowering their prices. Which of the following is the best example of economic investment? Suppose that prices are sticky in the short-run. Which of the following is NOT a factor that increases short-run price stickiness? We could expect that in the future: If expectations are always met then firms would never contribute to any of the short-run fluctuations in employment and output that are observed in real-world economies.

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