Multiple Choice
The short-run aggregate supply curve is positively sloped because:
A) business people are subject to money illusion.
B) wages are sticky.
C) workers care about nominal wages, not real wages.
D) of diminishing returns to labor.
Correct Answer:

Verified
Correct Answer:
Verified
Q42: An increase in investment spending leads to
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Q44: If actual GDP is less than potential
Q45: Suppose that the aggregate output level is
Q46: Use the following to answer questions:<br>Figure: Inflationary
Q48: Which factor will increase short-run aggregate supply?<br>A)
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Q50: A shift to the right of the
Q51: Use the following to answer questions:<br>Figure: Policy
Q52: Use the following to answer questions:<br>Figure: Aggregate