If Wages Are Sticky,then a Greater Than Expected Increase in the Price

question 21

Multiple Choice

If wages are sticky,then a greater than expected increase in the price level

• A)raises the real costs of production,so the short-run aggregate supply curve shifts left.
• B)raises the real costs of production,so the aggregate quantity of goods and services declines.
• C)reduces the real costs of production,so the short-run aggregate supply curve shifts right.
• D)reduces the real costs of production,so the aggregate quantity of goods and services rises.