2. Which of the following statements are true? Which are false? Explain why the false statements are

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2. Which of the following statements are true? Which are false?

Explain why the false statements are untrue. LO38.1

a. Short-run aggregate supply curves reflect an inverse relationship between the price level and the level of real output.

b. The long-run aggregate supply curve assumes that nominal wages are fixed.

c. In the long run, an increase in the price level will result in an increase in nominal wages.

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Economics

ISBN: 9781259723223

21st Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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