Prices only change if real GDP moves away from potential GDP.
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Q141: The flat inflation adjustment line describes 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
Q146: The IA line will move down if
A)potential
Q149: When real GDP is above potential GDP,
Q153: The inflation adjustment line is horizontal because
Q158: The flat inflation adjustment line reflects the
Q176: If real and potential GDP are equal,
Q190: If the economy is in an expansion,
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