If there is sufficient time for wage contracts to expire and nominal wage adjustments to occur, then the:
A) economy is operating in the short run.
B) economy has entered the long run.
C) unemployment rate will increase.
D) inflation rate will decrease.
Correct Answer:
Verified
Q30: The short-run aggregate supply curve is upward-sloping
Q31: In the long-run aggregate demand-aggregate supply model:
A)long-run
Q32: Q34: The short run in macroeconomics is a Q36: The equilibrium price level and level of Q37: The Laffer Curve shows the real world Q38: Refer to the diagram given below. Q39: Other things equal, a decrease in the Q77: In the short-run, demand-pull inflation increases Q124: The Laffer Curve underlies the contention that
A)real wages,
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