What is the reason behind why the SRAS curve is upward sloping? There are few unutilised resources Higher price level means higher nominal wages Higher price level means higher real wages Lower price level will increase profit Nominal wages and input costs are sticky in the short run
What is the reason behind why the SRAS curve is upward sloping? There are few unutilised resources Higher price level means higher nominal wages Higher price level means higher real wages Lower price level will increase profit Nominal wages and input costs are sticky in the short run
Chapter8: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 3WNG
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Question
What is the reason behind why the SRAS curve is upward sloping?
There are few unutilised resources |
||
Higher |
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Higher price level means higher real wages |
||
Lower price level will increase profit |
||
Nominal wages and input costs are sticky in the short run |
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