A short-run aggregate supply curve (SRAS) assumes:
A) the CPI is fixed.
B) each point on the SRAS is potential real GDP.
C) fixed or sticky nominal wages.
D) nominal wages vary directly with price changes.
Correct Answer:
Verified
Q118: Exhibit 6A-3 Consumer equilibrium Q119: Exhibit 6A-4 Consumer equilibrium Q120: In the short run, a price increase Q121: The position of the long-run aggregate supply Q122: Exhibit 10A-1 Aggregate demand and supply Q124: Beginning from full-employment macro equilibrium, increase Q125: In the long run, a decrease Q126: Exhibit 10A-1 Aggregate demand and supply Q127: Beginning from the full-employment level of real Q128: One reason for the short-run aggregate supply
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents