Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are ?
Correct answer: B. sticky prices
- A. market prices
- B. sticky prices
- C. fixed prices
- D. regulatory prices
Explanation
Sticky prices are prices that adjust slowly rather than immediately clearing the market when supply or demand changes. Fixed and regulated prices may be administratively set, but the stated definition specifically describes stickiness.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
According to the classical economists the economy ?
Keynesian economics became popular because it was able to explain ?
The government increase government spending to try to reduce unemployment This is an example of ?
In 1979-80 China first created _____ for foreigners to set up enterprises hire labor and import duty-free goods for processing and re-exporting ?
Structural economists from the United Nations Economic Commission for Latin America (ECLA) emphasized ?
Countries with chronic balance of payments deficits eventually need to borrow abroad often from the ________ as the lender of last resort?