If Nominal Wages and Salaries Are Fixed as Firms Change

question 12

Multiple Choice

If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate supply curve is: ​

• A) ​ vertical.
• B) ​ horizontal.
• C) ​negatively sloped.
• D) ​positively sloped.

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Definitions:

Offshoring

The practice of relocating a company's business process, such as manufacturing or services, to another country, often to reduce costs.

Insource

The practice of assigning tasks or projects to individuals or departments within a company rather than to external entities.

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Financial resources allocated towards the acquisition, upgrade, and maintenance of information technology infrastructure and software.