> Most people accept this, but tell them if you increase the number of dollars but leave cheeseburger production the same, you'll need more dollars to get the same amount of cheeseburgers as you did previously, and they insist this isn't true.
The "leave cheeseburger production the same" is doing much of the heavy lifting here. There are many studies that show that prices tend to be sticky[1]. However, when prices do go up, more production does come online to capture those higher prices[2]. However, this can fail to materialize due to a number of reasons.
The "leave cheeseburger production the same" is doing much of the heavy lifting here. There are many studies that show that prices tend to be sticky[1]. However, when prices do go up, more production does come online to capture those higher prices[2]. However, this can fail to materialize due to a number of reasons.
[1] https://en.wikipedia.org/wiki/Nominal_rigidity
[2] https://en.wikipedia.org/wiki/2010s_oil_glut#Causes