If prices and wages are perfectly flexible, then g = 0 and changes in aggregate demand have

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“If prices and wages are perfectly flexible, then g = 0 and changes in aggregate demand have a smaller effect on output.” Is this statement true, false, or uncertain?

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The Economics Of Money Banking And Financial Markets

ISBN: 978-0134376936

6th Canadian Edition

Authors: Frederic S Mishkin ,Apostolos Serletis

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Question Posted: Nov 14, 2024 03:01 AM

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If prices and wages are perfectly flexible, then g = 0 and changes in aggregate demand have a smaller effect on output. Is this statement true, false, or uncertain? Explain your answer.
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If prices and wages are perfectly flexible, then g = 0 and changes in aggregate demand have

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The Economics Of Money Banking And Financial Markets

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