The assumption that prices and wages are flexible implies that the:
A) Short-run aggregate supply curve is irrelevant
B) Short-run aggregate supply curve shifts slowly in response to deviations of current output from potential output
C) Long-run aggregate supply curve is irrelevant
D) Long-run aggregate supply curve could not shift
Correct Answer:
Verified
Q47: Which of the following statements best describes
Q67: If a negative supply shock is associated
Q68: Policymakers can neutralize:
A)Supply shocks, but only in
Q69: Increases in productivity result in:
A)Higher inflation as
Q70: Real business cycle theory seeks to explain
Q72: Policymakers could neutralize all of the following
Q73: If prices and wages are slow to
Q74: If a negative supply shock is associated
Q75: Real business cycle theory explains fluctuations in
Q76: If prices were to adjust quickly:
A)Output gaps
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents