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