Which of the following is true of the short-run aggregate supply curve?
a. It shows the relation between the inflation rate and the quantity of aggregate output firms supply, other things constant.
b. It shows the relation between the price of labor and the aggregate quantity of labor workers supply, other things constant.
c. It shows the relation between the interest rate and the quantity of capital goods firms supply, other things constant.
d. It shows the relation between the price level and the quantity of aggregate output firms supply, other things constant.
e. It shows an inverse relationship between the price level and real GDP.
d
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What do we need to assume about firms in the sticky price model?
A) They accommodate any demand at the given price. B) They hire until the real wage equals the average labor productivity. C) They maximize only current profits. D) They adapt the price to current conditions.
The commerce clause strengthened the federal government's interventionist power in industries operating on a national scale
Indicate whether the statement is true or false