In the upward-sloping range of the short-run aggregate supply curve, the nominal wage is _____, which implies that the real wage is:
A) flexible; flexible.
B) sticky; flexible.
C) flexible; sticky.
D) sticky; sticky.

Question

Quizplus · Accepted Answer

In the upward-sloping range of the short-run aggregate supply curve, the nominal wage is sticky, which implies that the real wage is flexible.

In the Upward-Sloping Range of the Short-Run Aggregate Supply Curve