If firms are experiencing slow growth in demand, the inflation adjustment line is likely to shift down.
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Q166: Explain how expectations and the level of
Q167: Exhibit 24-6 Q168: The IA line will move up if Q169: Why do wages and prices exhibit inertia? Q170: If firms and workers expect prices to Q172: Explain what happens to the inflation adjustment Q173: The inflation adjustment line will shift down Q174: Historically, there has been a positive correlation Q175: If the economy is in a recession, Q176: If real and potential GDP are equal,![]()
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