Consider the three theories of the upward slope of the short-run aggregate-supply curve.

According to the sticky-wage theory, the economy recovers from a recession as nominal wages are adjusted so that real wages rise or decline .

According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly or people expect prices to rise quickly in a recession .

According to the misperceptions theory, the economy is in a recession when the price level is above or beyond what was expected.