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

question 52

Multiple Choice

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

• A)relative to prices wages are higher and employment rise.
• B)relative to prices wages are higher and employment falls.
• C)relative to prices wages are lower and employment rises.
• D)relative to prices wages are lower and employment falls.

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Definitions:

Mesoderm

The middle layer of an embryo from which muscles, bones, and circulatory systems develop.

Apical Ectodermal Ridges

Raised areas of ectodermal cells at the tips of developing limbs in embryos, crucial for the regulation of limb formation.

Somitomeres

The early divisions of mesodermal tissue in the developing embryo that eventually form somites, contributing to the vertebral column, rib cage, and skeletal muscles.

Coelom

A fluid-filled body cavity found in most multicellular animals, situated between the intestinal canal and the body wall.