Explain Why It Is Not Realistic to Assume That All

question 57

Essay

Explain why it is not realistic to assume that all input prices (including wages) are fixed when deriving the short-run aggregate supply curve. What is a better assumption?

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Definitions:

Equal Protection Clause

A provision in the Fourteenth Amendment to the United States Constitution stating that no state shall deny to any person within its jurisdiction "the equal protection of the laws."

Fourteenth Amendment

An amendment to the U.S. Constitution granting citizenship to all persons born or naturalized in the United States, including former slaves, and guaranteeing all citizens equal protection under the law.

Public School Segregation

The practice of separating children in schools based on race, which has been ruled unconstitutional in the United States.

Integration

The process of ending racial segregation and bringing together people of different racial backgrounds.