The IA line will move down if
A) potential GDP decreases.
B) real GDP falls below potential GDP.
C) real GDP increases relative to potential GDP.
D) real GDP equals potential GDP.
E) the rate of inflation increases.
Correct Answer:
Verified
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
Q144: Staggered wage and price setting speeds up
Q145: Current price and wage behavior is dependent
Q147: If a firm expects the rate of
Q148: If real GDP is less than potential
Q149: When real GDP is above potential GDP,
Q150: If real GDP is greater than potential
Q151: Wage setting
A)is based only on wages expected
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