________ flexible wages and prices imply that the short-run aggregate supply curve is ________.
A) More; flatter
B) Less; steeper
C) less; vertical
D) More; steeper

Question

Quizplus · Accepted Answer

Flexible wages and prices mean that the economy can adjust more quickly to changes, leading to a steeper short-run aggregate supply curve as output responds more to price changes.

________ Flexible Wages and Prices Imply That the Short-Run Aggregate