The short-run aggregate supply curve is upward sloping because
A. a lower price level creates a wealth effect.
B. lower taxes motivate people to work more.
C. money wage rates do not immediately change when the price level changes.
D. most business firms operate with long-term contracts for output but not labor.
Answer:C
The short-run aggregate supply curve is upward sloping because
A. a lower price level creates a wealth effect. B. lower taxes motivate people to work more. C. money wage rates do not immediately change when the price level changes. D. most business firms operate with long-term contracts for output but not labor.