If prices of goods and services quickly adjusted to demand shocks, then
A) ﬁrms would ﬁnd it diﬃcult to produce at their optimal output rates.
B) output rates would quickly adjust to changes in demand.
C) ﬁrms would ﬁnd it easier to produce at their optimal output rates.
D) the economy would experience severe short-run ﬂuctuation.

Question

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The Answer of If prices of goods and services quickly adjusted to demand shocks, then
A) ﬁrms would ﬁnd it diﬃcult to produce at their optimal output rates.
B) output rates would quickly adjust to changes in demand.
C) ﬁrms would ﬁnd it easier to produce at their optimal output rates.
D) the economy would experience severe short-run ﬂuctuation.

If Prices of Goods and Services Quickly Adjusted to Demand