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Questions and Answers
What is the central assumption in the model of the pizza market discussed in the text?
How do economists typically view the adjustment of prices in markets?
What makes continuous market clearing unrealistic according to the text?
In reality, which statement best describes the adjustment of many wages and prices?
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What role do labor contracts play in the flexibility of wages according to the text?
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How does the text explain the sticky nature of prices in market-clearing models?
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