If Prices Were to Adjust Quickly

question 116

Multiple Choice

If prices were to adjust quickly:

• A)Output gaps would be persistent
• B)Output gaps would disappear quickly
• C)Inflation would adjust slowly
• D)The short-run aggregate supply curve would not shift

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Definitions:

Coping With Stress

A process of managing external and internal demands that are perceived as taxing or exceeding a person's resources.

Moral Decisions

Choices made based on considerations of what is ethically right or wrong.

Community Standards

Refers to the accepted norms, values, and expectations shared by a community or society.

Isomorphic Incongruity

A theoretical concept highlighting the similarity in structure but difference in meaning or content between two elements.