One reason the short-run aggregate supply curve is positively sloped is that lower price level raises ________________ if nominal wages are sticky. (a) Real wages (b) nominal wages (c) unemployment (d) employment

One reason the short-run aggregate supply curve is positively sloped is that lower price level raises ________________ if nominal wages are sticky. (a) Real wages (b) nominal wages (c) unemployment (d) employment

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter20: Aggregate Demand And Supply

Section20.A: The Self Correcting Aggregate Demand And Supply Model

Problem 5SQ

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Question

One reason the short-run aggregate supply curve is positively sloped is that lower price level raises ________________ if nominal wages are sticky.

(a) Real wages

(b) nominal wages

(d) employment

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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