Asked by
Karena Tinsley
on Nov 16, 2024
Verified
The only way to rationalize an upward slope for the short-run aggregate-supply curve is to argue that wages are sticky in the short run.
Short-Run Aggregate-Supply Curve
A curve that shows the relationship between the total output of goods and services and the price level for output in the short run.
Wages Are Sticky
The theory that salaries do not adjust quickly to changes in market conditions, leading to unemployment or surpluses.
- Gain insight into the reasons determining the contours of the aggregate demand and aggregate supply curves.
- Comprehend the influence of anticipatory beliefs in the economic sphere, especially on price points.
Verified Answer
AG
Learning Objectives
- Gain insight into the reasons determining the contours of the aggregate demand and aggregate supply curves.
- Comprehend the influence of anticipatory beliefs in the economic sphere, especially on price points.
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