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People had been expecting the price level to be 120 but it turns out to be 122. In response Robinson Tire Company increases the number of workers it employs. What could explain this

Answer :

ogorwyne

The sticky price theory and sticky wage theory is the best explanation why the price level is 122 instaed of 120 with more employment.

What is the sticky price theory?

This is the theory that teaches that the sellers of goods and services are reluctant to change their prices.

They are reluctant to change prices even though there may be changes in the cost of inputs used in production.

Read more on sticky price theory here: https://brainly.com/question/9426091

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