Compared to an economy with staggered overlapping wage contracts,an economy in which wage contracts are renegotiated simultaneously will tend to have
A)steeper SP curves.
B)flatter SP curves.
C)faster shifting of its SP curves.
D)slower shifting of its SP curves.

Question

Quizplus · Accepted Answer

When wage contracts are renegotiated simultaneously, changes in economic conditions can lead to faster adjustments in wages, causing the SP (short-run Phillips) curve to shift more quickly.

Compared to an Economy with Staggered Overlapping Wage Contracts,an Economy