šŸ·ļø LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION ā†’
Log in
Economics
4
answers
0
watching
156
views
10 Dec 2018

If output prices rise withtout thr nominal wage rising, then real wages rise and workers are willing to work more. This is one of the main reasons that the short-run aggregate supply curve slopes upward.
True or False?

Watch
4
answers
0
watching
156
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Collen Von
Collen VonLv2
11 Dec 2018
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

One reason the short-run aggregate supply curve slopes upward is due to the " stickiness" of input prices relative to output prices. This being the case, the firm's profit-maximizing output rises with the rise in prices, all else constant.
Ā 
True or false?

1. In economy A, all workers agree in advance on the nominal wages that their employers will pay them. In economy B, half of all workers have these nominal wage contracts. In contrast, the other half have indexed employment contracts, so their wages rise and fall automatically with the price level.

A. According to the sticky-wage theory of aggregate supply, which economy has a more steeply sloped short-run aggregate-supply curve?
B. In which economy would a 5 percent increase in the money supply have a larger impact on output in the short run?
C. In which economy would it have a larger impact on the price level in the short run?

2. When output rises, unemployment falls.

a. TRUE Ā 
b. FALSE Ā 
Ā 
3. How do prices change due to an economic contraction that is caused by a shift in aggregate demand?
Ā  A. They rise in the short run and fall back to their original level in the long run. Ā 
Ā  B. They rise in the short run and rise even more in the long run. Ā 
Ā  C. They fall in the short run and rise back to their original level in the long run. Ā 
Ā  D. They fall in the short run and fall even more in the long run.

4. What happens to sales and profit during recessions?
Ā  A. sales rise and profits fall Ā 
Ā  B. profits fall and sales rise Ā 
Ā  C. sales and profits fall Ā 
Ā  D. sales and profits rise
5. Which of the following explains why production rises in most years?
Ā  A. increases in prices of goods and services Ā 
Ā  B. increases in stock prices Ā 
Ā  C. aging population Ā 
Ā  D. technological innovation Ā 




Ā 

The short-run aggregate supply curve is upward sloping because:

A. wages and other resource prices match changes in the price level.

B. the price level is flexible upward but inflexible downward.

C. per-unit production costs rise as the economy moves toward and beyond its full-employment real output.

D. wages and other resource prices are flexible upward but inflexible downward.

Related Documents

ECO 1102 Lecture Notes - Lecture 14: Opportunity Cost, Oil Reserves, Aggregate Demand
roseskunk973
ECO 1102 Lecture Notes - Lecture 17: Potential Output, Aggregate Supply, Longrun
pinkguinea-pig341
ECO 1102 Lecture Notes - Lecture 20: Nominal Rigidity, Aggregate Supply, Aggregate Demand
bluewallaby160

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in