Economists think that smoothing the business cycle is a worthy undertaking because all of the following reasons except: (a) There exist cyclical unemployment. (b) Firms are harderto manage when there are demand fluctuations. (c) Prices are sticky. (d) The government fi scal position suffers from cycles. 25. The assumption of price inertia (sticky prices) (a) is not important in the short-run. (b) can be rationalized on sound economic in-tuition. (c) makes all the difference between the short- and the long-run models. (d) belongs to the long-run analysis 26. With price inertia ) nothing important changes. b) the classical dichotomy falls apart. c) markets do not clear. d) monetary policy is ineffective. (61 ( ( (