In macroeconomic models, prices are assumed to be completely inflexible in
A)the very short run only.
B)the short run and remains so over time.
C)the very long run.
D)situations when the changes in demand look to be permanent.

Question

Quizplus · Accepted Answer

In macroeconomic models, prices are often assumed to be completely inflexible in the very short run due to factors like menu costs and contracts, which prevent immediate price adjustments.

In Macroeconomic Models, Prices Are Assumed to Be Completely Inflexible