When Nominal Wages Increase, the Short-Run Aggregate Supply Curve

question 166

Multiple Choice

When nominal wages increase, the short-run aggregate supply curve:

• A) shifts to the right.
• B) shifts to the left.
• C) remains constant.
• D) disappears.

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Definitions:

Cycle Inventory

The portion of inventory available due to the replenishment process, reflecting the quantity of goods that cycle through the supply chain.

Retailers

Businesses that sell products directly to consumers through various channels, including physical stores and online platforms.

Demand During Lead Time

Demand during lead time is the total customer demand for a product while waiting for replenishment or delivery of new stock.

Review Period

The designated time frame within which a process or performance is evaluated.