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Contrary to Behavior That Would Be Required to Eliminate Output

Question 89

Multiple Choice

Contrary to behavior that would be required to eliminate output gaps, many firms in the economy:


A) intentionally set prices below equilibrium prices in order to create shortages.
B) adjust their prices only periodically.
C) have fully-flexible prices that change constantly.
D) only change the amount of output they produce in the long run, not in the short run.

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