when aggregate demand declines, the price level may remain constant, at least for a time, becuase when aggregate demand declines, the price level may remain constant, at least for a time, becuase product markets are highly competitive. menu costs rise. price cuts tend to increase efficiency wages. firms individually fear that their price cut may set off a price war.

Question

07-10-2022
Business

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when aggregate demand declines, the price level may remain constant, at least for a time, becuase when aggregate demand declines, the price level may remain constant, at least for a time, becuase product markets are highly competitive. menu costs rise. price cuts tend to increase efficiency wages. firms individually fear that their price cut may set off a price war.

Sagot :

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