Rigidities in the Adjustment Process to Full Long-Run Equilibrium Arise

Multiple Choice

Rigidities in the adjustment process to full long-run equilibrium arise when:

A) there is agreement among firms and workers that the inflation target is low.
B) inflationary expectations are aligned with target rates.
C) inflationary expectations veer away from target rates.
D) long-term concerns about inflation seem to play a bigger role in economic decision