If Prices and Wages Are Perfectly Flexible, There Is Never

question 111

True/False

If prices and wages are perfectly flexible, there is never any tradeoff between inflation and unemployment.

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Definitions:

M3

A gauge of monetary supply encompassing M2 as well as sizable time deposits, institutional money market funds, and additional significant liquid assets.

Double Coincidence

A situation in barter economies where two parties each possess an item the other wants, allowing for an exchange without the need for a common unit of value.

Small Denomination Time Deposits

Bank deposits that are held for a fixed term with a specified small minimum amount and earn interest over time.

Large Denomination Time Deposits

Time deposits in a bank or financial institution with a large minimum amount of money required, typically over $100,000, and a fixed term.