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  3. Study Set
    Principles of Macroeconomics Study Set 12
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    Exam 12: Policy Effects and Cost Shocks in the Asad Model
  5. Question
    If Wages Adjust Fully to Price Increases, Fiscal Policy Will
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If Wages Adjust Fully to Price Increases, Fiscal Policy Will

Question 1

Question 1

True/False

If wages adjust fully to price increases, fiscal policy will have no effect on output in the long run.

Correct Answer:

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