Which of the following statements is false?
A)a nations' natural level of output can increase as a result of growth
B)imperfection in product markets can lead to temporary deviations in a nation's output from its long-run natural level
C)sticky wages cannot lead to temporary deviations in a nation's output from its long-run natural level
D)none of the above.

Question

Quizplus · Accepted Answer

Sticky wages can lead to temporary deviations in a nation's output from its long-run natural level. This is because in the short run, firms may be reluctant to decrease wages even if the demand for their products decreases, leading to a decrease in output below the natural level.

Which of the Following Statements Is False