If nominal wage rates were completely flexible, then
A)fiscal policy would affect real money balances but not output
B)there would be a clear trade-off between unemployment and inflation
C)periods of unemployment would be much more frequent
D)frictional unemployment would not exist
E)monetary policy would be ineffective in changing the price level

Question

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The Answer of If nominal wage rates were completely flexible, then
A)fiscal policy would affect real money balances but not output
B)there would be a clear trade-off between unemployment and inflation
C)periods of unemployment would be much more frequent
D)frictional unemployment would not exist
E)monetary policy would be ineffective in changing the price level

If Nominal Wage Rates Were Completely Flexible, Then