Use sticky-wage theory to explain why an increase in the expected price level shifts the aggregate supply curve
When people expect the price level to increase, wage bargaining will lead to higher wages. The increase in wages raises the costs of production. So firms will supply less at any actual price level.
Economics
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The table above shows the production possibilities frontier for the nation of Isolanda
a) Find the marginal cost of a pound of fish using the above PPF. b) How does the marginal cost of a pound of fish change as more fish are caught?
Economics
A visual expression of income distribution is depicted by
a. the Gini coefficient b. the IRS curve for incomes held by households c. supply and demand curves for the four resources: labor, capital, land, and entrepreneurship d. the Lorenz curve e. the diagonal on a Gini distribution
Economics