If Wages Are Sticky, Then a Greater Than Expected Increase

question 263

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 good and services rises.

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