AP® Macroeconomics

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Moderate

Sticky Prices

APMACR-NBPD6N

The Keynesian idea that prices are "sticky" is best summarized by which of the following statements?

A

In the short run, input prices tend to change more quickly than output prices.

B

In the long run, prices for luxury goods tend to be fairly stable compared to other kinds of goods.

C

In the short run, output prices tend to change more quickly than input prices.

D

In the long run, all prices can change easily.

E

In the short run, prices for staple food items do not change often.