If firms have only a weak tendency to raise markups during cyclical expansions,or if there are only a few auction markets in raw materials,then
A) the SP curve will be relatively flat and a "cold-turkey" cure for inflation will be relatively quick.
B) the SP curve will be relatively flat and a "cold-turkey" cure for inflation will be long lasting.
C) the SP curve will be relatively steep and a "cold-turkey" cure for inflation will be relatively quick.
D) the SP curve will be relatively steep and a "cold-turkey" cure for inflation will be long lasting.
Correct Answer:
Verified
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