Multiple Choice
If output is above its natural rate,then according to sticky-wage theory
A) workers and firms will strike bargains for higher wages.This increase in wages shifts the short-run aggregate supply curve right.
B) workers and firms will strike bargains for higher wages.This increase in wages shifts the short-run aggregate supply curve left.
C) workers and firms will strike bargains for lower wages.This decrease in wages shifts the short-run aggregate supply curve right.
D) workers and firms will strike bargains for lower wages.This decrease in wages shifts the short-run aggregate supply curve left.
Correct Answer:
Verified
Correct Answer:
Verified
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