Question:
In the sticky-price model of aggregate supply, if none of the firms in the market have flexible prices, then the short-run aggregate supply curve will be
In the sticky-price model of aggregate supply, if none of the firms in the market have flexible prices, then the short-run aggregate supply curve will be
Updated On: Jul 18, 2024
- horizontal
- vertical
- steeper than it would be if some firms had flexible prices
- upward sloping to the right
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The Correct Option is A
Solution and Explanation
The correct option is (A) : horizontal.
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