Staggered Wage and Price Setting

question 70

Multiple Choice

Staggered wage and price setting

• A)slows down the speed of wage and price adjustment.
• B)accelerates the adjustment of prices and wages in the economy.
• C)does not affect the speed of wage and price adjustment.
• D)has an uncertain effect on the speed of wage and price adjustment.
• E)is why wages and prices throughout the economy never adjust in the short run.

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