If There Are Sticky Wages,and the Price Level Is Greater

question 44

Multiple Choice

If there are sticky wages,and the price level is greater than what was expected,then

• A)the quantity of aggregate goods and services supplied falls,which is shown by a shift of the short-run aggregate supply curve to the left.
• B)the quantity of aggregate goods and services supplied falls,as shown by a movement to the left along the short-run aggregate supply curve.
• C)the quantity of aggregate goods and services supplied rises,as shown by a shift of the short-run aggregate supply curve to the right.
• D)the quantity of aggregate goods and services supplied rises,as shown by a movement to the right along the short-run aggregate supply curve.

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Definitions:

Profit-maximizing

The process or strategy of adjusting production and sale conditions to achieve the highest possible profit margin.

Purely Competitive

A state of the market where products are identical across sellers, barriers to entry are minimal, and the actions of any single buyer or seller have no notable impact on the market.

Product Price

The amount of money required to purchase a good or service, typically influenced by factors such as cost of production, market demand, and competition.

Production Schedules

Plans that outline the timing and sequence of manufacturing processes to efficiently meet production goals and deadlines.