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:

Biological Causes

Refers to the physiological and genetic factors contributing to the development of diseases or health conditions.

Abnormality

A deviation from what is considered normal or typical, often used in a psychological or medical context to describe behaviors or conditions.

Nineteenth Century

The period of years from 1801 to 1900, inclusive, often marked by industrial, cultural, and social changes globally.

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.