5. In the short run, the aggregate supply curve is horizontal, because wages and prices are sticky...
Question:
5. In the short run, the aggregate supply curve is horizontal, because wages and prices are sticky at predetermined levels. Therefore, shifts in aggregate demand affect output and employment. LOP8
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Macroeconomics And The Financial System
ISBN: 9781429253673
1st Edition
Authors: N. Gregory Mankiw, Laurence Ball
Question Posted: