Question # 5
Identify and briefly discuss 3 reasons why the short-run aggregate supply-curve slopes upward. In other words, why is there a positive relationship between the price level (P) and the quantity of output supplied (Y) in the short run?
The correct way of answering such a question can be summarized as follows; A Supply Curve is a graphical representation of... View the full answer
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reasons why the short-run total supply-curve inclines upward (1) the sticky-wage theory, in which a lower value level makes... View the full answer