If prices are sticky
A) prices will quickly adjust to changes in demand.
B) economic activity will not be coordinated efficiently.
C) quantity supplied will always equal quantity demand.
D) economic activity will be coordinated efficiently.
Question 2
Which of the following is likely to happen if the annualized growth rate of money supply increases while real GDP remains unchanged?
A) The unemployment rate will rise. B) The nominal GDP will fall.
C) The inflation rate will fall. D) The inflation rate will rise.
