Some industries that have rigid prices.In those industries,we tend to
A)find that output is also rigid over the business cycle
B)find that output varies greatly over the business cycle
C)find the employment in these industries is quite stable over the business cycle
D)find that the rate of return is negative in boom times
E)all of the above.

Question

Quizplus · Accepted Answer

In industries with rigid prices, output tends to vary greatly over the business cycle because prices do not adjust to changes in demand, leading to fluctuations in production levels to meet demand changes.

Some Industries That Have Rigid Prices