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If wages and prices were fully indexed: Multiple Choice the economy would have difficulty adjusting to supply shocks because real wages could not adjust easily.
If wages and prices were fully indexed: Multiple Choice the economy would have difficulty adjusting to supply shocks because real wages could not adjust easily. there would be less inflation following an adverse supply shock. inflation could always be perfectly anticipated. inflation arising from expansionary monetary policy could be averted. politicians would be more likely to fight inflation vigorously
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