The longer is the interval between firms' price adjustments
A. the smaller the output effect of a given change in the money supply.
B. the shorter the interval the horizontal new Keynesian aggregate supply curve will remain in position.
C. the longer the interval that the horizontal new Keynesian aggregate supply curve will remain in position.
D. the new Keynesian aggregate supply curve will become steeper.
Answer: C
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A) Madison has an absolute advantage in making empanadas and tacos. B) Austin has an absolute advantage in making empanadas and tacos. C) Madison has an absolute advantage in making empanadas and Austin has an absolute advantage in making tacos. D) Madison has an absolute advantage in making tacos and Austin has an absolute advantage in making empanadas.
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