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Business, 10.04.2020 18:57 dbarker7174

Suppose you have two economies in recession. Economy A has workers with long term contracts that guarantee high nominal wages for the next five yers. Economy B has workers with annual contracts that are indexed to changes in the price level. Based on this information, which of the following statements is true?a. Both economies will return to the natural rate of output at the same time
b. Economy B will return to the natural rate of output sooner
c. Economy A will return to the natural rate of output sooner
d. There is not enough information to make a decision.

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