Multiple Choice
In the Phillips curve, 
, if 
Is large, then:
A) price-setting behavior is completely insensitive to short-run fluctuations.
B) price-setting behavior is very insensitive to short-run fluctuations.
C) inflation is not very sensitive to short-run fluctuations.
D) price-setting behavior is very sensitive to short-run fluctuations.
E) Not enough information is given.
Correct Answer:
Verified
Correct Answer:
Verified
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