Evidence indicating that the wage and price adjustment process is extremely slow would strengthen the case for ________.

Question

Quizplus · Accepted Answer

If the wage and price adjustment process is slow, it implies that the economy does not quickly self-correct from shocks. This situation strengthens the case for discretionary policy, where policymakers actively intervene to adjust economic policies based on current economic conditions, rather than relying on automatic stabilizers or predetermined rules.

Evidence Indicating That the Wage and Price Adjustment Process Is