A change in the money wage rate shifts
A) neither the SAS nor the LAS curve.
B) the SAS curve but not the LAS curve.
C) both the SAS and LAS curves.
D) the LAS curve but not the SAS curve.

Question

Quizplus · Accepted Answer

A change in the money wage rate affects the short-run aggregate supply (SAS) curve because it alters production costs, but it does not affect the long-run aggregate supply (LAS) curve, which is determined by factors like technology and resources.

A Change in the Money Wage Rate Shifts