If wages and prices are completely flexible
A) the Phillips curve will be horizontal.
B) the IS curve will be vertical.
C) the LM curve will be horizontal.
D) the Phillips curve will be vertical.
Correct Answer:
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Q17: The smaller the parameter Q18: When inflation is higher than expected and Q19: When inflation is lower than expected and Q20: The stickier are wages and prices Q21: The less sticky are wages and prices Q23: If wages and prices are completely fixed Q24: An increase in the natural rate of Q25: A decrease in the natural rate of Q26: An increase in the expected inflation rate Q27: A decrease in the expected inflation rate
A) the
A)
A)
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