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Why Is the SRAS Curve Steeper Above Its Intersection with the Long-Run

Question 10

Multiple Choice

Why is the SRAS curve steeper above its intersection with the long-run aggregate supply curve?


A) Wages are stickier in the upward direction.
B) Wages are less sticky in the upward direction.
C) Lower inflation will lead to faster growth.
D) Employees become less motivated to work during times of unexpected inflation.

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