Slow wage rate adjustments:
A) increase the time it takes for the economy to adjust to output gaps.
B) raise costs in both the long run and the short run.
C) reduce costs in both the long run and the short run.
D) reduce the need for the economy to adjust to output gaps.
Correct Answer:
Verified
Q24: Q25: When the economy is in long-run equilibrium Q26: When the economy is in long-run equilibrium Q27: Consider a graph with inflation rate in Q28: Consider a given AD curve with a Q30: Wage rates do not respond quickly because: Q31: When aggregate demand falls and output falls: Q32: Recessionary gaps result in: Q33: Inflationary gaps result in: Q34: Differences in countries' adjustments to output gaps
A)
A)
A) higher wage rate
A) higher wage rate
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents