Sticky prices

From CNM Wiki
Jump to: navigation, search

Sticky prices are prices that adjust sluggishly and, therefore, do not always equilibrate supply and demand. (Cf. flexible prices.)

Definition

According to Macroeconomics by Mankiw (7th edition),

Sticky prices. Prices that adjust sluggishly and, therefore, do not always equilibrate supply and demand. (Cf. flexible prices.)