Nominal price stickiness can arise in a number of ways. This can be sticky on account of
Menu costs and sticky nominal wages can generate nominal price stickiness. The cost of changing prices can make small adjustments unprofitable, while wage rigidity can slow…
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Nominal price stickiness can arise in a number of ways. This can be sticky on account of
Answer and explanation
Correct answer A
Menu costs and sticky nominal wages can generate nominal price stickiness. The cost of changing prices can make small adjustments unprofitable, while wage rigidity can slow changes in firms’ nominal costs.
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West Bengal SET (WB SET)