Which of the following is false?
A)In long-run equilibrium, all prices, including wages, have fully adjusted to changes in aggregate demand or aggregate supply.
B)The real wage is the nominal wage divided by the overall price level.
C)The aggregate supply curve is always upward sloping.
D)The aggregate demand curve is always downward sloping.

Question

Quizplus · Accepted Answer

The aggregate supply curve can shift to the right due to factors like technological progress and increased labor productivity, resulting in higher output at lower prices. However, there may be certain situations, such as during a recession or an oil embargo, where the aggregate supply curve may be horizontal or even downward sloping in the short run.

Which of the Following Is False