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Choose the correct statement. In the model of a sudden stop with nominal wage rigidities we studied, ifthere were no nominal wage rigidities, there would
Choose the correct statement. In the model of a sudden stop with nominal wage rigidities we studied, ifthere were no nominal wage rigidities, there would be a greater real exchange rate depreciation. In the model of a sudden stop with nominal wage rigidities we studied, an increase in the nontradable goods price, after a sudden stop, lowers firms' profits and causes a higher unemployment rate. In the model of a sudden stop with nominal wage rigidities we studied, the number of employed workers decreases after a sudden stop, while the GDP is constant
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