If an economy has sticky prices, and demand unexpectedly increases, you would expect the economys real GDP

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If an economy has sticky prices, and demand unexpectedly increases, you would expect the economy’s real GDP to:

a. increase.

b. decrease.

c. remain the same.

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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Question Posted: Mar 01, 2024 08:02 AM

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If an economy has sticky prices, and demand unexpectedly increases, you would expect the economys real GDP

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The answer is a increase Heres why Sticky prices In an economy with sticky prices prices adjust slow...View the full answer

Macroeconomics

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