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If equilibria below potential output are self-correcting, the economy will spend a great deal of ...

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If equilibria below potential output are self-correcting, the economy will spend a great deal of ...

Question 1.

If wages quickly adjust to price changes, the aggregate supply curve quickly becomes vertical.

▸ true

▸ false

Question 2.

If equilibria below potential output are self-correcting, the economy will spend a great deal of time on the horizontal part of the aggregate supply curve.

▸ true

▸ false

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

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