Question
Which of the following describes why the short-run aggregate supply (SRAS) curve is upward sloping but the long-run aggregate supply (LRAS) curve is vertical? Wages
Which of the following describes why the short-run aggregate supply (SRAS) curve is upward sloping but the long-run aggregate supply (LRAS) curve is vertical?
| Wages and prices are fully flexible in the short run and the long run. | ||
| There is a tradeoff between inflation and unemployment in the long run but not the short run. | ||
| Wages and prices are fully flexible in the long run but not in the short run. | ||
| Expectations only matter in the long run. |
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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
