The more 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.

ANSWER:

A) the more rapidly the economy will adjust to changes in aggregate demand.