Question
The short-run aggregate supply curve is based on the assumption that firms and workers have established nominal wages, with the expectation that Blank______.
Multiple choice question.
the current price level will persist
the price level will fall
the price level is irrelevant to workers
the price level will rise
Multiple choice question.
the current price level will persist
the price level will fall
the price level is irrelevant to workers
the price level will rise
Answers
GPT-4o mini
The correct answer is:
**the current price level will persist**.
In the short run, firms and workers base their wage and output decisions on the expectation that the current price level will remain stable, which influences their behavior in terms of production and employment.
**the current price level will persist**.
In the short run, firms and workers base their wage and output decisions on the expectation that the current price level will remain stable, which influences their behavior in terms of production and employment.