The Sticky-Wage Theory of the Short-Run Aggregate Supply Curve Says

question 77

Multiple Choice

The sticky-wage theory of the short-run aggregate supply curve says that when the price level rises more than expected,

• A)production is more profitable and employment rises.
• B)production is more profitable and employment falls.
• C)production is less profitable and employment rises.
• D)production is less profitable and employment falls.

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