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Many economists believe that some wages and prices are 'sticky downwards', meaning that these wages and prices increase quickly when demand is increasing but

Many economists believe that some wages and prices are 'sticky downwards', meaning that these wages and prices increase quickly when demand is increasing but decrease slowly, if at all when demand is decreasing. Discuss the consequences of this for the automatic mechanism that brings the economy back to potential GDP after a decrease in aggregate demand. (6 marks) **

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