The sticky-wage theory of the short-run aggregate-supply curve says that when the price level is higher than expected,
a) relative to prices wages are lower and employment rises.
b) relative to prices wages are higher and employment rises.
c) relative to prices wages are higher and employment falls.
d) relative to prices wages are lower and employment falls.
Ans: a) relative to prices wages are lower and employment rises.
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A production function in which the inputs are perfectly substitutable would have isoquants that are
A) convex to the origin. B) L-shaped. C) linear. D) concave to the origin.
Which of the following is an example of an expansionary monetary policy?
a. A reduction in government purchases of goods and services b. An increase in the discount rate c. An open market sale of U.S. government securities d. A reduction in the required reserve ratio e. A tax cut
In general, when the quantities of a complementary resource are increased, the productivity of the other resources
A. rise. B. fall. C. remain the same.
The more product differentiation in the market, the ________ the firm specific demand curve. The less product differentiation in the market, the ________ the firm specific demand curve.
A. steeper; flatter B. flatter; steeper C. more concave; more convex D. more convex; more concave