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Southern New Hampshire University *

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202

Subject

Economics

Date

Feb 20, 2024

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1

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Module Five Quiz @ Back to Assignment Attempts | 1 I I | Keep the Highest 1 / 1 11 . Recession True or False: If firms adjusted their prices every day, then the short-run aggregate-supply curve would be horizontal. True v O False Points: mmm 1/ 1 Explanation: Close Explanation ~ The statement “If firms adjusted their prices every day, then the short-run aggregate-supply curve would be horizontal” is false. If firms adjusted prices quickly and if sticky prices were the only possible cause for the upward slope of the short-run aggregate-supply curve, then the short-run aggregate-supply curve would be vertical, not horizontal. The short-run aggregate-supply curve would be horizontal only if prices were completely fixed. See Section: Why the Aggregate-Supply Curve Slopes Upward in the Short Run.
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