Even if expectations of inflation are rational, sluggish adjustment of wages and prices will still create...

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Even if expectations of inflation are rational, sluggish adjustment of wages and prices will still create...

Even if expectations of inflation are rational, sluggish adjustment of wages and prices will still create a short-run trade-off between inflation and unemployment.

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business economics

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Answer 1

Answer #1

True

Explanation: Wages and prices are sticky in the short run and this creates a short-run trade-off between inflation and unemployment.

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Answer 2

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Even if expectations of inflation are rational, sluggish adjustment of wages and prices will still create...

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What might prevent quick or immediate price adjustments with rational expectations, such that there is a...

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Even if expectations of inflation are rational, sluggish adjustment of wages and prices will still create...

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Add Answer to: Even if expectations of inflation are rational, sluggish adjustment of wages and prices will still create...

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Even if expectations of inflation are rational, sluggish adjustment of wages and prices will still create...