**Question:**Most economists reason that an economy adjusts to inflationary and recessionary gaps slowly because __________ are fixed in the short run.**Options:**- Consumer preferences- Taxes- Wages- Supplies of most of the inputsThe correct answer is "Wages." This indicates that wages are considered rigid in the short term, affecting the speed at which an economy can adapt to changes.

Inflationary gap occurs when the actual GDP is above the potential level. Recessionary gap occurs…

Answered: Most economists reason that an economy…

Most economists reason that an economy adjusts to inflationary and recessionary gaps slowly because are fixed in the short run. O Consumer preferences O Taxes O Wages O Supplies of most of the inputs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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