The correct choice is:
both input and output prices are fixed.
In the immediate-short-run aggregate supply curve, it is assumed that firms cannot adjust their prices or wages, meaning both input and output prices are fixed.
The immediate-short-run aggregate supply curve represents circumstances where
Multiple Choice
both input and output prices are fixed.
both input and output prices are flexible.
input prices are fixed, but output prices are flexible.
input prices are flexible, but output prices are fixed.
1 answer