With a Fixed Nominal Wage the SAS Curve Is Positively

Multiple Choice

With a fixed nominal wage the SAS curve is positively sloped because

A) an increase in P decreases the real wage and raises profits if output is increased.
B) A decrease in P decreases the real wage and raises profits if output is increased.
C) business firms are responsive to interest rates.
D) the marginal leakage rate is small.