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  3. Study Set
    Principles of Economics Study Set 8
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    Exam 35: The Short-Run Tradeoff Between Inflation and Unemployment
  5. Question
    If Prices and Wages Adjusted Rapidly and Producers Could Quickly
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If Prices and Wages Adjusted Rapidly and Producers Could Quickly

Question 154

Question 154

True/False

If prices and wages adjusted rapidly and producers could quickly distinguish the difference between a change in the price level and a change in the relative price of their products, then an increase in the money supply growth rate would have at most a very short-lived affect on unemployment.

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