asked 86.5k views
5 votes
Explain why the as curve has the slope you calculated as a result of the "sticky price theory".

asked
User Tpae
by
7.7k points

1 Answer

0 votes
The sticky output theory states that in the short-run as the prices are increasing, the aggregate quantity will be upward slopping. In this case, it is happening in the same way. As the price increased from $150 to $160, the mixed supply is increased from $16,100 to $16,200.
answered
User Andrew Dh
by
8.5k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.