If wages and prices are completely fixed
A) the Phillips curve will be horizontal.
B) the IS curve will be vertical.
C) the LM curve will be horizontal.
D) the Phillips curve will be vertical.
Correct Answer:
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Q18: When inflation is higher than expected and
Q19: When inflation is lower than expected and
Q20: The stickier are wages and prices
A) the
Q21: The less sticky are wages and prices
A)
Q22: If wages and prices are completely flexible
A)
Q24: An increase in the natural rate of
Q25: A decrease in the natural rate of
Q26: An increase in the expected inflation rate
Q27: A decrease in the expected inflation rate
Q28: An adverse supply shock will
A) result in
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