Explain what happens to the inflation adjustment line in the long run in each of the following cases.
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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 Q171: If firms are experiencing slow growth in 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, Q177: The table below shows the price level
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