If there are sticky wages, and the price level is greater than what was expected, then
a. the quantity of aggregate goods and services supplied falls, which is shown by a shift of the short-run aggregate supply curve to the left.
b. the quantity of aggregate goods and services supplied falls, as shown by a movement to the left along the short-run aggregate supply curve.
c. the quantity of aggregate goods and services supplied rises, as shown by a shift of the short-run aggregate supply curve to the right.
d. the quantity of aggregate goods and services supplied rises, as shown by a movement to the right along the short-run aggregate supply curve.
d
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Adverse selection in insurance requires that
a. all people face the same risk b. potential customers facing more risk are no more interested in purchasing insurance c. people are not risk averse d. insurers cannot tell higher risk people from lower risk people
Which of the following is NOT true for a perfectly competitive firm in the long run?
A. MC > LAC B. MR = MC C. SAC = LAC D. Price = MC