Even If Expectations of Inflation Are Rational,sluggish Adjustment of Wages

question 73

True/False

Even if expectations of inflation are rational,sluggish adjustment of wages and prices will still create a short-run trade-off between inflation and unemployment.

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Definitions:

Transactional Leader

A leadership style focused on the exchange between leader and followers, where compliance is exchanged for specified rewards.

Transformational Leader

A leadership approach that causes change in individuals and social systems, by creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of a group.

Leadership Substitutes Theory

A concept suggesting that certain characteristics of the organization, task, or subordinates themselves can diminish or replace the need for leadership.

Situational Leadership Theory

A leadership model that proposes the effectiveness of leadership styles varies depending on the readiness and competence of the followers.