If the Average Interval Between Firms' Price Adjustments Is Relatively

question 284

Multiple Choice

If the average interval between firms' price adjustments is relatively short

• A) an increase in aggregate demand will cause a relatively short-lived increase in real GDP.
• B) an increase in aggregate demand will cause a relatively long-lived increase in real GDP.
• C) a reduction in aggregate demand will cause a relatively long-lived reduction in real GDP.
• D) both B and C

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