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When Prices Are Fixed for a Period of Time,such as with Long-Term

Question 144

Multiple Choice

When prices are fixed for a period of time,such as with long-term contracts that fix wages,then


A) the government needs to intervene to adjust prices.
B) prices adjust,but not quickly enough to avoid shortages or surpluses.
C) prices do not adjust to changes in market conditions.
D) prices adjust instantly.
E) None of the above.

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