True or false: because price stickiness only matters in the short run, economists are comfortable using just one macroeconomic model for all situations.

   False

Explanation:  Price stickiness is the reluctance of existing prices in the market to change rapidly, although there are optimal conditions for this, given the broad economy whose indicators suggest that price differentiation is appropriate for the current real market conditions. This means that there is a so-called price rigidity and that the price of the goods does not change as soon as optimal conditions are created for it.

The macroeconomic model, unlike the economic theory, is applicable to the empirical presentation of the real situation, because it is a simplified representation of market reality with the help of which it is possible to look at the circumstances in the market in all segments. It is used to predict economic opportunities and behaviour in the market. This model is often used, though not only for predicting inflation and unemployment. Of course, it also serves to determine and predict price levels.

As such models represent and address issues important to the whole region, such as the state, for example, they deal with economic variables for the region / country as a whole. This means that such models do not deal with individual economic variables, so these models can only predict and determine general places in the economy. To be realistic, it is necessary to increase the number of economic variables within the model.

Price stickiness as an economic variable depends on the field when it comes to the type and content of economic production, sales, supply whatever, but depends on specific conditions related to a particular branch only. So it is impossible to apply a macroeconomic model to all individual economic variables, i.e individual branches of production, sales, etc, and setting prices for each branch individually i.e changing those prices.

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