Multiple Choice
The sticky-wage theory of the short-run aggregate supply curve says that when the price level is lower than expected,
A) production is more profitable and employment rises.
B) production is more profitable and employment falls.
C) production is less profitable and employment rises.
D) production is less profitable and employment falls.
Correct Answer:
Verified
Correct Answer:
Verified
Q18: The long-run aggregate supply curve shifts right
Q19: The misperceptions theory of short-run aggregate supply
Q20: An increase in the expected price level
Q21: If wages are sticky,then a greater than
Q22: Figure 33-3. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 33-3.
Q24: The long-run aggregate supply curve shifts right
Q25: Other things the same,continued increases in the
Q26: The misperceptions theory of the short-run aggregate
Q27: A decrease in the expected price level
Q28: Which of the following shifts long-run aggregate