The SAS curve is positively sloped because workers,in the short-run,will supply the labor required by
A)households at the fixed real wage.
B)business firms at the fixed real wage.
C)business firms at the fixed nominal wage.
D)A and B.

Question

Quizplus · Accepted Answer

The SAS (Short-Run Aggregate Supply) curve is positively sloped because, in the short run, workers are willing to supply more labor to business firms at the fixed nominal wage, not adjusting immediately for inflation or changes in the purchasing power of money.

The SAS Curve Is Positively Sloped Because Workers,in the Short-Run,will