When real GDP is above potential GDP, the inflation adjustment line IA shifts up.
Correct Answer:
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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
Q150: If real GDP is greater than potential
Q151: Wage setting
A)is based only on wages expected
Q152: When real and potential GDP are equal,
A)prices
Q153: The inflation adjustment line is horizontal because
Q154: The inflation adjustment line IA will shift
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