a. In the short run, when the price level increases, the quantity of real GDP su
ID: 1117647 • Letter: A
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a. In the short run, when the price level increases, the quantity of real GDP supplied will (Click to select) remain the same decrease increase and the aggregate supply curve will (Click to select) remain the same or not shift increase or shift to the right decrease or shift to the left .
b. In the short run, some input prices are said to be sticky. Sticky prices refers to
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a) In the short run, when the price level increases, the quantity of real GDP will Increase and the aggregate supply curve will remains the same or not shift .
because, the price level increase, and wage rate does not increase, it will induce the produce to produce more and thus quantity of real GDP supplied will increase and the it is shown by the movement along the aggregate supply curve .
b) In the short run, some input price are said to be sticky . Sticky prices refers to some input prices remaining constant even as the price level changes.
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