According to the Imperfect-Information Model, in Countries in Which There

question 24

Multiple Choice

According to the imperfect-information model, in countries in which there is a great deal of variability of prices:

• A) the response of output to unexpected changes in prices will be relatively large.
• B) the response of output to unexpected changes in prices will be relatively small.
• C) output will respond negatively to an unexpected rise in prices.
• D) output will not respond to an unexpected change in prices.

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Definitions:

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