Multiple Choice
According to Keynesian theory, SRAS curve is positively sloped, because
A) employers and employees fail to predict prices correctly.
B) employers and employees have misperception about the change in relative price level.
C) labour contracts are signed for a period in which labour market conditions are not known.
D) wages are flexible, but prices are not.
Correct Answer:
Verified
Correct Answer:
Verified
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