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All of the following statements are true, except: Select the correct answer below: The incentives in the economy to adjust in response to changes in
All of the following statements are true, except: Select the correct answer below: The incentives in the economy to adjust in response to changes in prices are stronger in periods of high and variable inflation than in periods of low inflation. High and variable inflation will lead to markets adjusting toward their equilibrium prices and quantities more erratically and slowly. Many individual markets will experience a greater chance of surpluses and shortages in an economy with high and variable inflation. Inflation can blur messages about the conditions of demand and supply in a market economy
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