Author Question: An upward sloping short-run aggregate supply curve suggests that A) prices and wages are ... (Read 97 times)

audie · **on:** Jun 30, 2018

An upward sloping short-run aggregate supply curve suggests that

A) prices and wages are completely inflexible.
B) prices and wages adjust in part to short-run demand changes.
C) prices and wages are completely flexible.
D) real GDP is determined by aggregate supply.

Question 2

If persistent inflation was due to declines in long-run aggregate supply, what pattern would be observed?

A) Only prices of services would increase; prices of goods would remain constant.
B) Increases in the price level would occur simultaneously with increases in real GDP.
C) Increases in the price level would occur simultaneously with decreases in real GDP.
D) Only prices of goods would increase; prices of services would remain constant.