For a given shift of the aggregate demand curve, the steeper the short-run aggregate supply curve, the larger the change in real GDP

In a demand-pull inflation, money wage rates rise because

A) a decrease in aggregate demand creates a labor shortage. B) an increase in aggregate demand creates a labor surplus. C) an increase in aggregate demand creates a labor shortage. D) a decrease in aggregate demand creates a labor surplus. E) an increase in aggregate supply creates a labor shortage.

Suppose that the price elasticity of demand for mittens is –2.5 . What would happen to the quantity of mittens demanded if the price of mittens rose from $5 to $6? Use the midpoint formula in your calculations

What will be an ideal response?