Prices are particularly sticky:
A) when there are widespread macroeconomic and monetary disturbances in the economy.
B) in the long run.
C) when markets are highly competitive.
D) when the economy is at full employment and positive demand shocks are occurring.

Question

Quizplus · Accepted Answer

Prices tend to be more resistant to change during periods of macroeconomic or monetary instability, such as during a recession or inflation. This can be due to factors such as uncertainty, contracts, and expectations.

Prices Are Particularly Sticky