The Less Staggered Are Labour Contracts

question 20

Multiple Choice

The less staggered are labour contracts:

• A) the less inflationary effects of a given change in money growth in the medium run.
• B) the more inflationary effects of a given change in money growth in the medium run.
• C) the less the inflationary effects of a given change in money growth in the medium run.
• D) the less rapidly the economy will adjust to changes in aggregate demand.
• E) the more rapidly the economy will adjust to changes in aggregate demand.

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Definitions:

Net Exports

The value of a country’s total exports minus its total imports, which can indicate the country’s economic strength in international trade.

Interest Rates

The percentage at which interest is charged or paid for the use of money.

Federal Reserve System

The Federal Reserve System, which is the main banking authority in the U.S., oversees monetary policy.

Elastic Currency

A currency system that can expand or contract in supply in response to economic needs, often managed by a central banking authority.