If wages and other input prices are inflexible, then the economy will not automatically adjust to full employment in the long run.
true / false.

TRUE

Explanation:

In a market economy, price is the adjustment vector between supply and demand for goods, services, and labor. Thus, in situations of imbalance, the price of factors adjusts, shifting demand / supply to a new equilibrium point. Therefore, price and wage flexibility is a major factor in rebalancing the economy. If these factors were inflexible, there would be no long-term adjustment.

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