The more sluggish wage and price adjustment is, the more variable output and the price level are

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The more sluggish wage and price adjustment is, the more variable output and the price level are when a discretionary policy is pursued. Is this statement true, false, or uncertain? Explain your answer.

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:35 AM

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The more sluggish wage and price adjustment is, the more variable output and the price level are

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False With a more sluggish wage and price adjustment it is more likely that the sh...View the full answer

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