With a Fixed Nominal Wage the SAS Curve Is Positively

question 10

Multiple Choice

With a fixed nominal wage the SAS curve is positively sloped because

• A)an increase in P decreases the real wage and raises profits if output is increased.
• B)A decrease in P decreases the real wage and raises profits if output is increased.
• C)business firms are responsive to interest rates.
• D)the marginal leakage rate is small.

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