Rising too because of general inflation

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Reference no: EM13819099

Joe notices that prices have gone up for the custom bikes he sells - but fails to notice that the price of everything else is rising too because of general inflation. This is described by the _______________ model, which explains how output _________ when prices are higher than expected.

A. sticky price; falls

B. sticky price; rises

C. imperfect information; rises

D. imperfect information; falls

Reference no: EM13819099

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