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    If Prices and Wages Are Slow to Adjust ("Sticky," Rather
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If Prices and Wages Are Slow to Adjust ("Sticky," Rather

Question 47

Question 47

Multiple Choice

If prices and wages are slow to adjust ("sticky," rather than flexible) :


A) Inflation would adjust rapidly
B) Output gaps would disappear quickly
C) Inflation would adjust to output gaps sluggishly
D) The short-run aggregate supply curve would not shift

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