Those who believe that wages adjust ________ to clear the labor market also believe that the ________ curve is vertical.

Question

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Those who believe that wages adjust quickly to clear the labor market also believe that the aggregate supply (AS) curve is vertical. This is because quick wage adjustments prevent prolonged periods of unemployment, implying that the economy is always at its natural level of output, regardless of the aggregate demand level.

Those Who Believe That Wages Adjust ________ to Clear the Labor