The Term for a Pattern of Initially Sluggish Adjustment of the Equilibrium

question 195

Multiple Choice

The term for a pattern of initially sluggish adjustment of the equilibrium price level to a change in aggregate demand followed by a greater adjustment in the future is

• A) real-business-cycle inflation dynamics.
• B) New Keynesian inflation dynamics.
• C) passive price dynamics.
• D) active price dynamics.

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