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    Exam 38: Extending the Analysis of Aggregate Supply
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    The Adjustment Mechanism That Brings the Economy to Its Long-Run
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The Adjustment Mechanism That Brings the Economy to Its Long-Run

Question 71

Question 71

True/False

The adjustment mechanism that brings the economy to its long-run aggregate supply has to do with inflation expectations, whereas the adjustment to the long-run Phillips curve has to do with wage flexibility.

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