Intuitively, the Lucas supply curve grows more inelastic as general prices become more variable because
A) firms get less information from forecasts of general prices.
B) firms get exaggerated bad news about the future trend of general prices.
C) employment adjustments become more difficult during periods of uncertain inflation.
D) a and c only.
E) none of the above.

Question

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The Answer of Intuitively, the Lucas supply curve grows more inelastic as general prices become more variable because
A) firms get less information from forecasts of general prices.
B) firms get exaggerated bad news about the future trend of general prices.
C) employment adjustments become more difficult during periods of uncertain inflation.
D) a and c only.
E) none of the above.

Intuitively, the Lucas Supply Curve Grows More Inelastic as General