Staggered wage and price setting speeds up the adjustment of wages and prices.
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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
Q143: Staggered price and wage setting means that
A)inflation
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
Q149: When real GDP is above potential GDP,
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