Why Is the SRAS Curve Steeper Above Its Intersection with the Long-Run

question 10

Multiple Choice

Why is the SRAS curve steeper above its intersection with the long-run aggregate supply curve?

• A) Wages are stickier in the upward direction.
• B) Wages are less sticky in the upward direction.
• C) Lower inflation will lead to faster growth.
• D) Employees become less motivated to work during times of unexpected inflation.

---

Definitions:

Collective Guilt

The emotion felt when individuals consider themselves as part of a group responsible for wrongful acts, leading them to experience guilt for actions they did not personally commit.

Good Mood

A state of positive emotional well-being, characterized by feelings of happiness, contentment, or joy.

Stigmatized Group

A group of people who are discriminated against or socially disapproved of because of some characteristic, leading to them being marginalized.

Prosocial Behavior

Actions intended to benefit others, including behaviors like helping, sharing, and comforting.