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The Full Indexation of Wages and Prices

Question 37

Multiple Choice

The full indexation of wages and prices


A) is widespread in most industrial countries
B) would ensure that each year's inflation rate could always be correctly anticipated
C) would cause some real wage rigidities
D) would greatly help an economy to adjust back to full employment after a supply shock
E) would eliminate all lags between measuring price changes and making wage payments

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