The assumption that wages change more slowly than prices provides an argument for the
A) aggregate demand curve having a positive slope.
B) aggregate demand curve having a negative slope.
C) aggregate supply having a negative slope.
D) aggregate supply having a positive slope.
D
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The kinked demand curve model is based on the assumption that rival firms will match a price cut but ignore a price increase.
Answer the following statement true (T) or false (F)
A family's ability to buy goods and services depends largely on the family's
a. economic mobility. b. place in the economic life cycle. c. transitory income. d. permanent income.
Market spreads usually range from ___ on large contracts to ___ on small contracts.
a. 3%; 0.5% b. 10%; 2% c. 1%; 2% d. 0.01%; 5%
An industry in which an increase in industry output is accompanied by an increase in long-run per-unit costs is a(n)
A. increasing-cost industry. B. constant-cost industry. C. break-even cost industry. D. decreasing-cost industry.