In general,as the economy expands or contracts over the business cycle
A) prices change rapidly
B) prices remain unchanged except in a recession
C) prices remain unchanged until the economy reaches full employment
D) prices change, but slowly

Question

Quizplus · Accepted Answer

Prices do change over the business cycle, but the rate of change is relatively slow. It is important to note that different prices may change at different rates (e.g. wages may change more slowly than prices for commodities like oil or agricultural products). Additionally, inflation can also influence price changes over the long term, but this is not necessarily tied to the business cycle.

In General,as the Economy Expands or Contracts Over the Business