If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate...
Question:
If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate supply curve (SRAS) is:
a. horizontal
b. vertical
c. negatively sloped
d. positively sloped
Aggregate supply
Aggregate supply covers all producers' actions on the macro part. Whole national economic production is counted in aggregate supply. Like market supply, the aggregate supply gets also influenced due to various inputs.
Answer and Explanation: 1
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View this answerd. positively sloped
When the aggregate supply curve is constructed for shorter tenure, then the curve is formulated with respect to the...
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Aggregate Supply in the Economy: Definition and Determinants
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Chapter 7 / Lesson 7
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Learn the definitions of aggregate supply and aggregate demand. See the determinants of aggregate supply, the determinants of aggregate demand, and what causes them to shift.
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- 1. The long-run aggregate supply curve will shift outward to the right when: a. there is economic growth. b. the real-balance effect increases. c. the amount of labor decreases. d. the price level
- Consider an AD/AS model in the long-run equilibrium. An output gap, caused by a leftward shift of the AD curve, would be eliminated if A. wages and other factor prices fell quickly. B. prices rose quickly. C. the AS curve shifted upward. D. wages rose qui
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- Using AS/AD and IS/LM analysis, illustrate the short-run effects of an expansionary fiscal policy (say, an increase in G). Assume that the SRAS curve is upward sloping, but not vertical.
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- If we observe a positively sloped labor supply curve, we can conclude that A. it violates the Law of Supply. B. the substitution effect is larger than the income effect. C. the substitution effect is smaller than the income effect. D. the market wage rise
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