Wage and Price Stickiness

question 118

Multiple Choice

Wage and price stickiness

• A)give rise to a vertical long-run aggregate supply curve.
• B)give rise to a vertical short-run aggregate supply curve.
• C)creates a surplus or a shortage of real GDP.
• D)prevents the economy from producing its potential level of real GDP.

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Definitions:

Competence

The ability and capacity to perform a task or role effectively, typically backed by specific skills, knowledge, and qualifications.

Communication Barriers

Obstacles or challenges that hinder effective exchange of information or understanding between individuals or groups.

Perceptual

Relating to the ability to interpret or become aware of something through the senses.

Impact

The effect or influence of one factor on another, which may refer to social, economic, environmental, or personal outcomes.