asked 56.2k views
1 vote
if menu costs were eliminated, the short-run aggregate supply curve will be ____________ because of wage price stickiness and slow wage adjustment by firms.

1 Answer

4 votes

Final answer:

The short-run aggregate supply curve will be upward sloping if menu costs were eliminated, due to wage price stickiness and slow wage adjustment by firms.

Step-by-step explanation:

The short-run aggregate supply curve will be upward sloping if menu costs were eliminated. This is because of wage price stickiness and slow wage adjustment by firms. Wage price stickiness refers to the resistance of wages and prices to adjust quickly to changes in demand or supply.

answered
User Ahmetunal
by
8.5k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.