Suppose That Wages and Prices Are Quite Flexible,so That the Short-Run

question 10

Multiple Choice

Suppose that wages and prices are quite flexible,so that the short-run aggregate supply curve is steep.In that case,________.

• A)policies to stabilize inflation are probably needed more than policies to stabilize economic activity
• B)supply shocks will destabilize inflation,but have minimal impact on output
• C)demand shocks will destabilize output,but have minimal impact on inflation
• D)all of the above
• E)none of the above

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A comprehensive and balanced view or portrayal that includes a variety of aspects or considerations.

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Areas of focus or concern in one's career that align with their expertise and aspirations.

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The availability of employment and labor, in terms of supply and demand, within an economy.

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