The less staggered are labor contracts,
A) the more rapidly the economy will adjust to changes in aggregate demand.
B) the less rapidly the economy will adjust to changes in aggregate demand.
C) the greater the inflationary effects of a given change in money growth in the medium run.
D) the less inflationary effects of a given change in money growth in the medium run.
Question 2
As the IS curve becomes steeper, we know that
A) a given change in the money supply will cause a larger change in output.
B) a given change in the money supply will cause a smaller change in output.
C) a given change in the money supply will cause the same change in output.
D) monetary policy becomes more effective.
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