Staggered price and wage setting means that
A) inflation tends to increase over time.
B) inflation tends to decrease over time.
C) prices are adjusted at a different time of the year than wages.
D) at any given time the majority of prices and wages are fixed.
E) past changes in wages and prices have no impact on current changes in wages and prices.
Correct Answer:
Verified
Q138: The IA line shows
A)the rate of change
Q139: The inflation adjustment line is flat because
A)firms
Q140: Suppose the central bank decides to switch
Q141: The flat inflation adjustment line describes the
Q142: Staggered wage and price setting
A)slows down the
Q144: Staggered wage and price setting speeds up
Q145: Current price and wage behavior is dependent
Q146: The IA line will move down if
A)potential
Q147: If a firm expects the rate of
Q148: If real GDP is less than potential
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