The short-run aggregate supply curve is upward sloping because in the short run the
A) both the money wage rate and the price level change.
B) money wage rate changes but the price level does not.
C) neither the money wage rate nor the price level can change.
D) price level changes but the money wage rate does not.

Question

Quizplus · Accepted Answer

In the short run, the price level can change while the money wage rate is sticky or slow to adjust, leading to an upward-sloping aggregate supply curve.

The Short-Run Aggregate Supply Curve Is Upward Sloping Because in the Short