Comparing the Aggregate Supply Curve and the Short-Run Phillips Curve

question 34

Multiple Choice

Comparing the aggregate supply curve and the short-run Phillips curve, we see that they

• A) each describe different parts of the economy.
• B) both exist because the real wage rate is fixed in the short run.
• C) both exist since money wages are flexible.
• D) both exist because the money wage rate is fixed in the short run.
• E) describe the same phenomena but contradict each other.

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Definitions:

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