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2- We assume flexible prices in the long run, but whenever it is costly to change prices (menu costs) or when there are long-term contracts

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2- We assume flexible prices in the long run, but whenever it is costly to change prices (menu costs) or when there are long-term contracts for labor or capital: a- short-run prices tend to be flexible. b- short-run prices tend to be sticky. C- long-run prices tend to be sticky. d- firms have to pay higher costs and therefore have to raise prices

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