?A short-run aggregate supply curve (SRAS) assumes:
A. ?the CPI is fixed.
B. ?each point on the SRAS is potential real GDP.
C. fixed or sticky nominal wages.
D. ?nominal wages vary directly with price changes.
Answer: C
You might also like to view...
In an optimal two-part tariff pricing schedule, consumer surplus is zero
Indicate whether the statement is true or false
Which of the following may be used by a plumber's union or a medical professional association to restrict membership?
a. all of the following are correct b. long apprenticeship periods c. difficult qualification exams d. stringent education standards e. high initiation fees
According to the Phillips curve, which fiscal policies can be used to reduce unemployment in the short run?
Suppose that a television studio has two shows, X and Z, and that tickets for viewing the taping of each show is free. The equilibrium price for a ticket to view the taping of show X is $25 and the equilibrium price for a ticket to view the taping of show B is -$20. It is likely that tickets to show ________ will need to be rationed on a first-come-first-served basis, while the producers of show
________ will have a much more difficult time filling the seats in the studio since the equilibrium price for tickets to that show is a __________ dollar amount. A) Z; X; positive B) Z; X; negative C) X; Z; positive D) X; Z; negative